You don't need to pay somebody, you just need to use workarounds in TurboTax (TT).
Do not enter the 1099-Q, at all. Not on her return. Not on yours. As previously stated, it does not need to be entered, if the distribution was covered by qualified educational expenses (QEE). She now has $24,000 in QEE:
$13,500 Room and board +$2500 books etc + $8000 Tuition = $24,000.
At this point, I'll assume you will claim the AOC on your return.
When she enters the 1098-T, on her return, enter $6000* in Box 1 and $17,500 in Box 5. $11,500 will become taxable scholarship. Added to the $1500 on her W-2, she'll have $450 of taxable income (11,500 +1500 - 12,550 Std deduction =450).
*18,000 (actual in box 1) - 8000(used for 1099-Q) - $4000 (used, by you, for AOC) = $6000 (that can be used against the scholarship)
If you're not claiming the AOC, she enters $10,000 in Box 1 and will not have any taxable income. Technically, she doesn't even need to file. But, she should file anyway to document declaring the scholarship taxable.
If you claim the AOC, on your return, you enter the 1098-T with $4000 in Box 1 and Box 5 blank.
The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. What you actually enter is not sent to the IRS.
