Q. Why would she claim $4,000?
A. She doesn't claim $4000. You do. $4000 gets you the maximum AOC ($2500).
Q. Since the form 1098-T has the set numbers should you be changing the numbers on the tax submission or is there another place this should be accounted for?
A. The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. TurboTax can theoretically handle if you enter the 1098-T, as received, and you follow the interview carefully. But, it goes smoother if you use a work around in TurboTax (TT). Lying to TurboTax to get it to do what you want does not constitute lying to the IRS. The 1098-T that you enter in TT is not sent to the IRS.
