You cannot lump tuition and room and board together as college expenses.  Break them out separately:

• Tuition & fees
• Room and board
• Books & course materials
• computers 

What is in box 1 and box 5 of the 1098-T?

Scholarships that pay for room and board are taxable.  Scholarships  that pay for qualified educational expenses (QEE)(tuition, fees, books and course materials) are tax free.  Room & board and computers are qualified expenses for a 529 distribution.

If you are eligible, you also want to designate some expenses for claiming a tuition credit.  Is your student an undergrad or grad student?

That said, you have probably entered things wrong.  The interview is complicated.

You can't lump tuition with room and board. 

Funds (scholarships) used to pay tuition are tax-free. 

Funds used to pay room and board are taxable income for the student. 

I suggest you go through the Education section once more from beginning to end, it is quite a lengthy interview. 

One of the last screen will say "Maximize My Tax Break" 

The program should show a list of the expenses and scholarships it is using for the calculation. 

You may also type   letme   into the search and then click the "jump to letme" link that comes up. 

This will take you to a screen where you may be able to change your selection of an education credit

I am also finding an error in TT on this. I did not enter an amount of $0 for my daughter's tuition. It somehow skipped that. When I go through the items, OR go through the interview again, I cannot re-enter it. It tells me I "already entered it" - with no "edit" button available. Is the only way to delete my student and start again?

@connexcindy2016 

Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to the section you want to change; tuition, in your case (click edit next to the school name).

Thank you @Hal_Al , @Anonymous . I tried but found I had to go back and add my daughter again after attempting to put the correct numbers in the form.  There are some good articles explaining how (1098-T) Box 5 scholarship amounts can be used as tuition - and tax-free while properly assigning some of the scholarship funds from Box 5 also to the student's taxes. Some of the scholarship monies can be used, these articles explain referring to IRS documents, for the university Rent and Board - which is not tax-deductible. That can then be put on the college son/daughter's taxes. This year the standard deduction for them would be (? $12,200?). My understanding is that anything less than that on their taxes would mean they owe no monies.  This is my problem with having a full-time, dependent college student: Each year TT changes the way it does the interview. The questions are asked differently each year.  In previous years one needed to know the information above and put the proper amount for tax-deductible amounts (tuition, required books and fees, etc) under the parent. TT would then assume the portions that were not tax-deductible would be placed on the student's tax return without directing the user to do so.  I cannot figure out what TT is doing this year.

If TT is reading any of this, may I suggest that TT give a brief overview of how they will calculate the items using the requested information before the interview begins? Then I can answer interview questions properly knowing they are using all information needed by the IRS.  For example, they ask "Was any of <student name's>  Financial Aid  Already included as income?" However, TT then proceeds to ask if it was on a W-2 or a 1099. Of course, many students will not have this form but will need to claim it under the student's taxes in any case. Will there be yet another section in the interview asking about Room and Board which does not show on a W-2 or 1099? I shall soon find out! Then I will need to go back and correct any false assumptions I made on what TT would include or not include in this year's interview!