Thank you, now I understand it better! I got confused because I thought that the entry from 1098 T has to match exactly how it issues in one piece since it is sent to irs,(like 1099, w2 etc) . I didn't know I can put some on our return and some on the student's. I assume it doesn't matter how much he used for room/board($9000) which he'll put in the question asked into 1098 section anyways, also the rest was direct deposited back to him, which I don't know if it changes anything. He was already getting $5 back from the tax withheld from his part time job, so I assume he'll just pay tax on the extra amount of the scholarship above the standard deduction.
