Why does the program feel a $2000, 529 distribution is larger than the $9000 tuition payment?

[bcoomler]

I pay my son's college tuition and entered the form 1098-T values. $9500 in tuition and $500 in Scholarships. When I finished the program said I can't claim an education tax break because qualified tuition program distributions exceed the education expenses. The 529 distribution was only $2000. Thus this statement is false. How do I fix it?

[maglib]

I will assume you put an amount to be used for education credits in excess of your actual expenses... the default is $10k,  change that number to  $7000...  it is at the end of the education interview.  Then run maximize.

[bcoomler]

I have gone back through the education interview a couple times and don't see it asking about education credits. I looks at both the 1098-T and 1099-Q forms and don't see any default $10k. I'm still stuck.

[maglib]

Have you updated the program?  After you do, go to view forms and review the student info wk.  and form 8863, what is on 8863 part II line 10 and 16? then look at page 2.  Then other applicable form Education summary.  

[bcoomler]

I see the student info wk and don't see anything about a $10k education credit. There are no form 8863 available to review. I see a Part IV - Educational Institution and Tuition Summary as part of the student info wk, is this what you refer to? If so it looks okay.

[maglib]

was this all undergraduate?  Just a question  if at any point they were in grad school, I know we had an issue.  Student Info Wksht  Part II number 1  on ours was filled out as NO because teh 1098T said grad school although we paid undergrad in 2018 also....  once I fixed that to yes, the interview worked.  Also see Part VIII line 3 if that's not your issue.

[bcoomler]

All undergrad work. 1098-T has empty box for this as expected. I think I just got it. I when through Part II of the Student Info Wk and corrected a few then ran the interview again and this time it gave me the credit I expected.
Thanks for your help.

[maglib]

glad it worked, not sure I really helped but, glad you got it.

[Anita01]

Go back through the interview for education expenses. You will be asked to choose the amount you want to allocate to education credits, if you have entered both the 1099-Q and the 1098-T.  Enter the $7,000 there.

On that student Worksheet, you need to look at Part VIII line 3.