Our dependent attended university overseas. Turbo Tax optimizer is asking for a state zip code even though I said that it is overseas. What do I put that can be accept?

[Mango-muncher]

thanks, but even after deleting the supposed problematic form, I still have an error code about school and state zip code.  I even make up a valid school and state zip code and there is still the error.  

[Mango-muncher]

Thanks you have provided the most useful answer to date.  I have now tried what you suggested and entered in fictitious state, school zip codes for my accredited overseas university.  I have also entered a fictitious EIN number.  TT seems to accept these fictitious answers and will now let me file.  However form 8863 is now clearly incorrect as it states my foreign (accredited) University has a (valid US) state and school zip code.  I didn't want to claim the tutition credit but TT forces me to do it.  Does form 8863 get transmitted to the IRS?  If so then my form is incorrect, and I will need another solution.  What can I do to resolve these TT requirements for state, school zip code and school EIN number?  If form 8863 doesn't get transmitted, then why can't TT change their software program to resolve this error rather than forcing people to enter fictitious answers?  I am losing confidence in TT to correctly do my taxes due to this software bug.

[Hal_Al]

I think you need to accept the fact that you're not going to get this straighten out in the educational expenses section of  TurboTax.  Yo need to use one of the alternatives.  Delete the 1098-T and the student.

Alternative #1: Delete the 1099-Q (don't enter it at all since you know none of it  is taxable.  When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms.

Alternative #2 (thise will generate the worksheet showing none of it is taxable.  Instead of entering the educational expenses in the education expenses section, enter them in the 1099-Q section of TT. The workaround is: when asked who is the student, check "someone not listed here" (Lying to TurboTax to get it to do what you want does not constitute lying to the IRS). On the next screen, enter the real student's name.  This will eventually give you one simple screen to enter all expenses.