Don't understand what you mean by double dipping when this is showing as the Full earnings of the 1099Q 's  are fully taxable.     The actual figures put together are as follows:  tuition 12666.00  minus scholarships of 8052.  leaving a balace of  4614.

The college credit on the back of the 1040 is 2558

So in my mind the parents have a balance of 4614 - 2558 amer ed cr =2056.

The gain on the 1099Q is 3323.     ( I thought the only thing taxable on that would have been 3323-2056= 1267.    Guess I am overthinking it..

Was just nervous that the program might have a glitch.. but it's probably me.