One final caveat, before you proceed. Be sure you have, at least, $1500 in tax liability, so that you get the full AOTC ($1000 refundable, $1500 non refundable).
Theoretically, TurboTax (TT) can handle this, by you following the interview. But, it doesn't always do a good job and it's easy to make mistakes. Since you already know the outcome, it may be best to use short cuts.
On your return, enter the 1098-T with $4000 in box 1 and box 5 blank. Enter no other amounts.
On his return, enter the 1098-T with box 1 blank (or 0) and $30,019 in box 5. Reduced the $30,019 by any additional books and/or computer expenses.
Q. Where is the income reported on his return?
A. TurboTax will put the taxable scholarship on line 8r of schedule 1 (this is a new place, starting in 2022). It ends up on line 8 of form 1040, with any other schedule 1 income.
