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.
You are correct, it should be $4000.
Be sure you qualify for the AOC
Thanks for the confirmation. I think though that something may have changed in TurboTax this year, though, because going through the Education Information I am never presented with a screen titled “Amount Used to Calculate Education Deduction or Credit”. Since this is just a worksheet I'll edit it after printing, but it would be nice to have it correct in the system too.