there is an option to choose for not dependent - might be called other

you will have to put in an amount for tuition not reported to you or somehow say all was used for qualified education to make it non taxable (assuming of course the tuition/fees etc is over the $17K)

At the top of the 1099Q worksheet, theres a button on line D for it the beneficiary is "someone else" then lower down is a button for Other Student Qualified Expenses...thats how Ive done these in the past.

FWIW Ive seen other tax pros mention that the 1099Q isnt even cross matched anywhere and as long as it was used for educational expenses, dont even worry about it, I cannot confirm or deny this is true.

WAIT, WAIT, WAIT!!!!!!!

Lets see if I have this.  Taxpayer gets a 1099Q for beneficiary son with $17000 distribution of which $5000 is earnings and $12000 of basis.  Ex claims son and the AOTC.

If, If, If the TOTAL qualifying expenses are ONLY $17000, then there is NO correct way to enter it in ProSeries so the taxpayer isn't taxed BECAUSE THE TAXPAYER WILL BE TAXED, at least on part of the $5000.  I believe this is exactly what ljr was getting at.

Just do as Lisa says and and fill out the worksheet for Qualifying Education Expenses for Other than Taxpayer, Spouse or Dependents.  Make sure you enter on Line 19 the amount the Ex used for the AOTC credit.  Then scroll down to Part III, Line 8 and tell your client to pay up.

You will need at least $21000 of qualifying expenses to make this go away, assuming EX claimed maximum AOTC.

Box 1 1098-T is $32,033 

I just wasn't sure if it's the dad's year to claim the son and the 1099Q is in the mom's name how to make the $5,000 in earnings nontaxable for the mom