Since the 1099-Q is less than box 1 of the 1098-T and completely used for qualified expenses, I would not enter it at all. Tuck it in with your tax records. See page 52 for qualified distributions at IRS Publication 970, Tax Benefits for Education.
For the education credits, you would exclude any of the income used towards tuition (rather than room and board) when determining your students potential credits. The AOTC income eligibility changed this year to match LLC. The phaseout for both is:
$80,000-$90,000 or
$160,000- $180,000 MFJ
Please read another post of mine
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
