To accomplish what @Hal_Al correctly suggested do this.
Remember that the 1098-T is an informational form so you c
a report values that differ from those that you see on the form. In the student’s return in the 1098-T form in the program enter 32800 in Box 1 which represents total qualified education expenses. In Box 5 enter 46000 which accounts for the increase in the student’s taxable scholarship amount. Look on line 8 of her 1040 and you should see the 13200 of taxable income mentioned by Hal_Al. Be sure that you checked the box on her return saying that someone else will claim her.
Now on your return in the education credit section just enter 4000 as expenses. You don’t have to do anything else and you should see your 2500 credit. Note that on her return there will be Kiddie tax which needs information from your return to complete.
