Education

IF the 1099-Q is of no consequence, since it was all used to pay tuition, you needn't enter it into the TurboTax program. Keep a copy of the 1099-Q along with tuition receipts with your (and the student's) tax files.  

IF the 1098-T is of no consequence, since you can't claim the credit and there is no taxable income generated by it, the 1098-T does not need to be entered into the TurboTax program. Keep it and the student school statement with the tax files. 

There is one other option, the dependent student can claim the education expenses. The credit can offset his tax liability, but it can't increase his refund (it isn't refundable to him).

This can only be done if the Taxpayer that COULD claim the student doesn't. The student also cannot claim himself, he need to still file as a "potential" dependent. He does this by selecting "YES, Someone else can claim me" BUT "NO to Someone else will claim me".

This would only be beneficial if the student has a tax liability and if not claiming the dependent does not negatively affect the parent's return.