Your numbers need clarifying.
"another is earmarked just for housing"
Then that's taxable. How much? Already in the $8398?
Where does $4858 come from?
$2642 Fees? already in the $9711?
Does he have any other income? As long as his total income is less than $14,600. Then it doesn't matter how much of his scholarship is taxable. You should claim the full $4000 of tuition for the AOTC.
