So the 1099-Q does not even cover room and board. Tuck it away and don't bother to file it. This leaves $2k of room and board to be covered by scholarship in box 5. This brings box 5 down to $30,695 minus tuition yields $717 excess income. I would bet you had books and supplies of that much. That zeroes you out.
You want to go for the AOC though. The maximum needed out of pocket is $4k for full credit. Let's go a different direction. Expenses are box 1 + room and board = $39,640. Minus $4k needed for credit = $35,640 expenses left to cover.
Expenses -529 - scholarships = $4,717 excess scholarship income to the student. Again, 529 fully used and does not need to be entered.
The parent claims the $4k and AOTC. The phaseout for AOTC is:
$80,000-$90,000 or
$160,000- $180,000 MFJ
Reference: 2021 Publication 970 - Internal Revenue Service
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