Part VI - Education Expenses Of Student Information Worksheet

[trishbal]

How does Turbotax calculate the amount for Line 19 (expenses), i.e the amount "Used for exclusion"? I can't make sense of the number. I have Total Qualified Expenses of $43,911 ($43,377 tuition and fees plus $534 books) for the Lifetime Learning Credit. No scholarships, just a 529 Qualified Dist. of $41,498 with room and board of $11,800. Line 19 Used for exclusion calculates $29,698, with then leaves me with $14,213 Adjusted Qualified Expenses. How is that $29,698 calculated?

[AnnetteB6]

Based on the information you shared, line 19 seems to be the 529 Qualified Distribution amount minus the amount spent for room and board ($41,498-$11,800=$29,698).

That means that there is still $29,698 of the 529 distribution that must be accounted for and spent on qualified education expenses for it to be a non-taxable distribution.  When you  take the total qualified expenses of $43,911 and subtract the $29,698 you get $14,213 left in order to be used to claim the Lifetime Learning Credit.

[trishbal]

Thank you for taking the time to answer! That was such a simple calculation that I feel like I should have figured it out on my own. My mind is spinning though trying to make sense of these education credits and qualified distributions! Again, I appreciate your time!!!