Q. On my return, do I adjust Box 5, Scholarships, on the 1098-T to reflect the $4000 that is now claimed as income elsewhere in order to get the full AOTC credit?
A. Simple answer: yes. There are two ways to do it. 1. Reduce the box 5 amount by enough (presumably $4620 in your case), so that box 1 is at least $4000 more than box 5, when you enter it on your return. Or 2. Just enter $4000 in box 1 and leave box 5 blank. . Lying to TurboTax to get it to do what you want does not constitute lying to the IRS. What you enter is not sent to the IRS
