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.
