Q. Would those numbers require him to report taxable income from the 1099-Q?
A. No. You have more than enough expenses to cover both the 1099-Q (529 plan distribution) and claim the American Opportunity Credit (AOC) on your tax return.
Do not report the 1099-Q on his return. Also, none of his scholarship is taxable either (box 1 of the 1098-T exceeds box 5 by more than $4000), so he should not enter the 1098-T on his return, either.
If you did not claim the AOC, on your return (you should have $1500 on line 3 of Schedule 3 and $1000 on line 18c of form 1040), you should file an amended return to do so. This assumes you are otherwise eligible. See https://www.irs.gov/Individuals/AOTC
