Education

I believe you are saying box 5 is greater than box 1 which is causing a taxable income that is incorrect. The box 5 amount is irrefutable. Let's think of ways to use this money and how it affects each of you. Don't confuse a little student income with a huge tax credit.

• If you are the parent, claiming the child, and you qualify for the education credit, you want to maximize the credit, $4,000 out of pocket. Claim as much as possible of the scholarship went to room and board unless specifically designated  in the scholarship. The IRS has a great brochure that explains how scholarships and tax credits interact.
• Otherwise, student can just claim the lowest amount of income from scholarship based on education expenses in box 1 plus other eligible costs. See Qualified Education Expenses - Internal Revenue Service

The box 1 amount should reflect actual expenses paid in 2023 including expenses paid for the first 3 months of 2024. It is not a retroactive amount to 2022.

 Tuition paid for the first 3 months of the next year also qualify, See page 12, What Expenses Qualify at IRS Publication 970, Tax Benefits for Education.

Depending on the situation, your dependent son may need to claim the kiddie tax as well. 

• Scholarship income is a hybrid of earned income and unearned income.
• Earned income  for purposes of the filing requirement - Single $12,950 
• Earned income for the and dependent standard deduction. - earned income + $400 
• Unearned income for purposes of the kiddie tax and other 

Reference:  please look at another of my answers for help.