Yes, the 1099-Q is not entered since it covered qualified education expenses.
The 1098-T will be entered once by the parent and once by the student in very different ways. The parent is claiming $4k paid while the student is claiming $4k income - as long as the scholarship allows the use for living expenses and is not dedicated to tuition only. There could be other expenses as well, books, supplies, etc.
Parent:
- Enter the 1098-T basic information
- For the box entries, only box 1 is entered $4,000
- this maximizes your credit.
For the student, determine if kiddie tax comes into play and if your student needs to file a return.
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