The 1099-Q is much larger than the 1098-T plus expenses that you have listed. They may have distributed the money for payment in Dec 2020 for sprint semester 2021. It was distributed in 2020 so it goes with 2020 return.
Box 1 minus qualified expenses becomes taxable income. Not included in your list is room and board. That could take up the remainder of the amount. See 529 for Room and Board. The 1099-Q is only required to be reported for taxing income. If all of the distribution ends up being used for eligible expenses, then you do not have to enter the 1099-Q,
The 1098-T is also filed for education credits or taxable scholarships. If the 529 covered all of the expenses, you would not need to file the 1098-T.
If there were any expenses left not covered by the 1099-Q, then whoever claims the student, claims the credit.
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