Turbotax allocates all of my 529 withdrawals against qualified expenses, leaving me with less than $4000 to use on the American Opportunity credit. I want to claim the full $4000 for the AOC, and then some of my 529 withdrawals will be taxed. I can't figure out which worksheets or forms to change (I am using the desktop version). Everything I click on that looks promising says "calculated" with no info about where the number was calculated so I can go there and change the input. What do I need to change to accomplish this?
Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary". Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to “Education Information”. When you get to the screen titled “Amount Used to Calculate Education Deduction or Credit”, verify the amount you want to use or change it.
There's a chance you may reach that (or similar) screen sooner in the educ interview.
Thanks for reading and replying. I don't seem to get to that screen. After the question about drug conviction it takes me to a screen saying:
"We'll make this entry zero that's no longer needed. Earlier you told us to treat $0 as a taxable eduction distribution in order to claim a larger education tax credit or deduction."
I don't get to the screen you mention. I also don't recall ever telling Turbotax to make this zero.
At that screen ("We'll make this entry zero that's no longer needed. Earlier you told us to treat $0 as a taxable education distribution in order to claim a larger education tax credit or deduction.") is there a box to override or enter something? Enter $4000.