Hal_Al
Level 15

Education

 In that case you do both.

 

Choose "The number in box one is not the amount I paid the school"  and enter 10,000  as the amount you paid.

 

Choose "these scholarships weren't for 2020 expenses" box, and enter $20,000 as the amount.

 

That should wipe out the $20,000 in box 5 and enter $10,000 as the amount paid on form 8863. 

 

There's nothing you can do to totally avoid IRS scrutiny. So keep good records, in case you have to defend  this. The TurboTax worksheet may be helpful