Q. So if TurboTax (TT) does this is it ok to include it on ours or no???
A. No. The 1099-Q gets entered on the recipient's return, if it needs to be entered, at all. If TT is entering on your return it's because you told it that you are the recipient.
You may have to delete the 1099-Q and start over.
For most families, the 1099-Q does need to be entered at all because it was all used for qualified expenses (tuition, fees, books, computers, room and board (food and housing). But if you need to use some of the same expenses to claim a tuition credit, then you'll have to calculate the taxable portion of box 2 of the 1099-Q. TT will do this with careful entry of the data.
Q. If entering the1098-T on both how do you adjust accordingly?
If entered correctly, TT will do this automatically, but not reliably. So, you need to verify that it happened. On the student's return, 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 “Education Information”. When you get to the screen titled “Amount Used to Calculate Education Deduction or Credit”, verify the amount you want to use or change it (usually $4000). TT notoriously wants to use $10,000 for the Tuition credit rather than $4000.
If TT doesn't assign an amount, you'll have to use a workaround. Using an example, if the parent is using $4000 of tuition to claim the American Opportunity Credit, the student reduces box 1 of the 1098-T by $4000 when he enters it on his return.
