Have a client -son has $6633 in box 1 tuition  no scholarship full time student. First year of college. Parents AGI  $152k. 1099q distribution

form grandparent for $5758 in sons name and SS. When I enter 1099q info it flows to part VIII on student info worksheet  but doesn't deduct it from the $6633 tuition. It is still calculating the $2500 AOTC. Am I 

missing something or not understanding how the 1099Q works? Any help is appreciated.