@chammdive
The 1098-T is only an informational document. The numbers can be entered (or not entered) and/or adjusted as needed. That is, you can enter them on both your return and the student's return.
Since you used $2000 of tuition on your return, reduce the box 1 amount by $2000, when you enter it on his return.
The 1099-Q is also only an informational document. The numbers are not required to be entered in TurboTax.
When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax (TT) will enter nothing about the 1099-Q on the actual tax forms.
On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."
Since you know none of the 1099-Q is taxable ("Our qualified expenses on the 1098-T are significantly higher -more than double- than the combined 1099-Qs amounts"), just delete the 1099-Q.
