NO. If you know that the total qualified expenses
(after adjusting for scholarships & the tuition credit) was more than the box 1 amount on the
1099-Q; then just don't enter the 1099-Q at all. When the taxable amount is
zero, nothing goes on the actual tax return sent to the IRS.
Even if some of it is taxable, as long as the taxable amount is less than $1050 (a student dependent's filing threshold), he still does not need to file a return.
There is a slight risk of getting an IRS letter by not filing. But in your case, the risk is the same whether you file or not, because you would be filing with 0 income and no forms to show the 1099-Q as not taxable.
