AOTC, 1099Q's and Scholarships and due diligence

[NECPA in NEBRASKA]

I am trying to do my best to get these correct, but I also want to do the best thing for my clients. The student lived at home the first semester and in an apartment the second semester. They do have records for the second semester that they paid for living off campus, but nothing for when he lived at home. I have the college estimates for living off campus and living at home. I am trying to allocate as much of the 529 withdrawals as possible to room and board, if that's even possible anymore. The scholarships were required to be used for tuition, so I don't think that I can move them around by making them taxable. The parents obviously paid for their house and food for him to live with them the first semester. Did they need to have receipts for that to reimburse themselves? I have been reading bunches of articles and still can't decide if they needed to actually bill him. All of the disbursements were below the college's estimated costs of room and board for 1 semester each. Thanks to anyone that has time to look at this.