The program will handle the scholarship income, you do not need to add it again as misc/ other income since the 1098-T is being entered.
You took the $4k in tuition on your return for the AOTC and everything else goes on the child's taxes.
For example: Box 1 $20k, Box 5 $30k
Parent takes $4k from box 1 for their return.
Student enters 1098-T box 1 $16k, box 5 $30k. All scholarships required for tuition are used along with other to cover box 1 and the rest goes to room and board. This gives the student $14k of taxable income.
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