Q. Is it possible that only I enter the 1098T and my 1099Q and my daughter just skips hers completely?
A. Yes*. She has no reason to report the 1098-T. She cannot claim a credit (you can, on your return). None of her scholarship is taxable. If she tries to enter, you risk making mistakes and there may be an upcharge by TT.
Since "Total education expenses, less scholarships, are more than the 529 + $4000, you can claim the AOTC. Just enter the 1098-T, without adjustment, on your tax return.
Q. I don't know how to make adjustments according to your advice.
A. Alternatively, you can enter the 1098-T with $4000 in box 1 and 0 in box 5 (or leave it blank), since you know you have the needed $4000 of expenses after allocating expenses to the 1099-Q. Your actual amount is $60,007-28,520-8,489-14.563=8435. You could enter the adjusted 1098-T with $8435 in box 1 and box 5 blank
*The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.
If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)
You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2023 expenses".
Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.
