Education

No, let's get this straight. You have:

• 1098-T tuition only, no scholarships
• plus other qualified expenses - 529 qualified Room and Board  and Qualified Education Expenses - Internal Revenue Service
• is greater than the 1099-Q distribution.

You need to:

• move as much 529 income to room and board as possible
• claim the education credit, if qualified. See What You Need to Know about AOTC and LLC
• remove the 1099-Q from your return since it isn't taxable.

IRS Publication 970, Tax Benefits for Education states:

Page 45: Don't report tax-free distributions (including qualifying rollovers) on your tax return.