Looks like you are saying that the scholarships and tuition pretty much cancel each other out, so are you able to apply the distribution to Room and Board expense? The student does not need to use school housing, but the expense for room and board claimed (even living at home) must be only as much or less than what the school would charge.
1. The taxpayer claiming the student can enter all education forms into their TurboTax program so that their program can do the math and try for an education credit.
2. If there is no education credit, the person that was issued the 1099-Q enters that form in their program, and the student enters Form 1098-T if there is taxable scholarship income they need to claim into their TurboTax program.
3. What was the amount the program was coming up with? Sometimes the program will tax more of the distribution in order to claim part of an education credit. If you adjusted the taxable amount of the distribution, please verify that this is not in contrast to a credit (look at your Schedule 3 line 3)
4. The amount will be considered unearned.
5. Form 8615 would be on the students return. Form 8615 Line 6 is asking for your Form 1040 line 15.
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