Possible bug in Turbotax 1023 with 1098

[RobFixit]

My daughter got a 1098T. She was a full time grad student. Box 1 of the 1098T is $4566.80 and box 5 is $21341.33. Both boxes 8 and 9 are checked. The other income amount included in the 1040 should be the difference between the scholarship and the payments receive for qualified tuition (box 5 minus box 1), as it has always been in previous years. But this year, it is not subtracting the box 1 amount and instead counting the entire box 5 as taxable income. I had entered all of the 1098 data directly into a 1098 in form mode, and when that did not work, I deleted the form and entered it all using the step by step mode, and I got the same issue.  I can go into a Student Info Worksheet on line 7 and manually enter the tuition amount and it then subtracts it, but I should not have to do that. Turbotax should do that. Is this in fact a bug, or do I have to do something else?

[Hal_Al]

It sounds like TT is assuming that you, the parent,  are using all the tuition, on your return to claim the Lifetime Learning Credit (LLC).  If that is not the case, do 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 (to $0, if you are not claiming the credit).  You may reach that screen sooner.

The "Education Information" section will also allow you to review your answers to all the qualifying questions. 

[RobFixit]

Ok, you helped me get to the area that I was able to fix it. Getting into the Education Information area, I found the selection to indicate she was in an Assoicate, bachelor's or graduate degree was not checked. That fixed it. But it still indicates there might be something in turbotax that caused me to run into the issue in the first place, as I had first entered the information directly into the form in form mode, and I know I checked both boxes that she was a grad student and at least half time. I would think that should tell Turbotax she was a qualified student.

So thanks for getting me to the area I needed, and it now has the correct output

Thansks!