1. Not if spent on qualified expenses.
2. Enter the 1098T as received. However. you may want/ need to enter other expenses.
3. Box 1 tuition on the 1098-T does not include room and board which are eligible expenses for the 1099-Q.
4. A dependent can't claim education credits but could claim additional income. If the 1099-Q actually covers more than all of your qualified expenses, then it will need to be entered. See who enters it here. The rules sound simple, the person who receives the funds and whose Social Security number is on the form is the one to report the 1099-Q on their tax return, if necessary.
Please see another post of mine here for more details of the 1099-Q exceeding college tuition. Also, see Pub 970 for more information on the AOTC credit.
For 2022, the income phaseout for education credit is $80,000-$90,000 or for MFJ $160,000-$180,000. A credit on your return and not entering the 1099-Q are the top goals.
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