Q. Does my dependent also enter the 1098-T info on his return although I am already receiving a credit for this?
A. Yes.
Enter the 1098-T, exactly as received, on the student's return. Enter book & computer expenses separately. In his interview, you should eventually reach a screen called "Amount used to calculate education deduction or credit" Be sure the amount in that box is the amount you used (usually $4000). That will put all his excess scholarship as income on his return.
Be advised some people last year said they're not getting the "Amount used to claim the tuition deduction or credit" screen on the dependent’s interview. Check the student information work sheet (part VI, line 17) to verify it was entered. If not, the alternate workaround is to enter $4000 less than the actual box 1 amount, when he enters the 1098-T.
There's yet another (and simplest) work around. Manually calculate the taxable amount of scholarship and enter the 1098-T, on his return, with 0 in box 1 and the taxable amount in box 5. In that case, the amount in the "Amount used to claim the tuition deduction or credit" box is 0, if you get that screen.
