If he is your dependent, he has a lot of income. Reducing your 529 distribution is the best you can do. If you qualify for an education credit, take it.
If he is not your dependent, he might qualify for the education credit. See What You Need to Know about AOTC and LLC.
Any scholarships restricted to tuition will have to remain as such. Otherwise, we can move numbers around. You will have to play with the numbers and look at the scholarships.
For the 529, it can be used on 529 qualified Room and Board to reduce the taxable amount. Best case scenario, the 529 is used up with qualified expenses after room and board- but I doubt that will happen.
For the 1098-T- only $4k is needed to claim the AOTC, if qualified and able.
Putting this together:
Education credit takes $4k from box 1
This leaves $10k in box 1 to be covered by 529 preferably or scholarships if required.
The remaining scholarships and Q are taxable but the AOTC would go a long way to reducing the tax.
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