I don't know how many more ways to try to add information about my 22-year old son's scholarship info. We clearly paid $22,523 (1098-T, line 1) and he clearly received $11,415 in scholarships (1098-T, line 5). He received no other types of scholarship/aid, nor did he use scholarship money for unqualified things like room, board, etc...all clearly answered in the TurboTax dialogue. He is in his 4th year of undergraduate studies, fully dependent on us. I have deleted him as a dependent and re-entered all the information multiple times to account for program updates. I've even "lied," saying we didn't receive a 1098-T and entered information manually. Same result: his scholarship money is income for him to claim (easy enough for him not to do so when he files), and we are not receiving the tax credit (not a good thing for us when it's in the $2,000 neighborhood). I am not facing this with my daughter's information.
Somebody please help...what is it about his info that is tripping up the system? Hal tried to help and I'm appreciative, but I'm back at the stuck mode.
Quick question just to clarify....are you filling out his (your sons) tax return or your (parent) tax return and trying to enter the 1098-T into your return? It is not clear in your question.
Please do not say you did not receive a 1098-T.
Try to delete the 1098-T and re-enter it.
The program may allocate expenses towards a credit if the credit to the parent is better than the tax to the student, but you can over-ride this.
Please go back to the "Education" section. (Federal, Deductions & Credits, Scroll down to Education).
Get to the "Education Information" section (the last option on the "Here's Your Education Summary" screen).
Re-answer the interview questions until you get to the last screen. This screen should show how much of the education expenses are being allocated to a credit.
If you are eligible for the American Opportunity Tax Credit (usually the more valuable credit), the credit maxes out at 4,000 expenses, so you wouldn't want to allocate more than that.
If you are taking the Lifetime Learner's Credit, the credit maxes out with 10,000 expenses.
If you want all the expenses to be applied to the scholarships/grants/1099-Q distribution, change the amount to 0.
Type letme into the search box to see which credits you are eligible for and change the credit you claim if desired.
Once you click "Maximize My Education Tax Break" the program determines the best allocation, so don't click this if you want something different.
You can always go back to this allocation screen and change the allocation amount.
Sometimes the program will initially allocate 10,000 towards a credit if there is no income yet entered, and this might not be the best choice.
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