ausf
Level 2

Turbo tax reading scholarship as income and filing for students who are dependents

My son had a scholarship for 30938.  His payments for qualified tuition and related expenses are 27683. as indicated on his 1098T.  Turbo tax is telling me his income is 30000.  and he owes over 5000. in taxes.  This is not correct.  How do I fix it in Turbotax?  

 

Also, because both my kids are dependents, I listed their 1098 T and 1098 Q under my taxes.  I thought they also had to file because they received 529 contributions from their grandparents and that should count as their income.  Is that correct or do they not need to file?