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TurboTax is reducing my qualified higher education expenses for a 529 plan by $10K but the expenses applied to the AO Credit are $4K. Where does the other $6K come from?

 
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Accepted Solutions
MarilynG
Expert Alumni

TurboTax is reducing my qualified higher education expenses for a 529 plan by $10K but the expenses applied to the AO Credit are $4K. Where does the other $6K come from?

You are correct that TurboTax is reducing qualified education expenses by 10K in error when there is a 529 distribution.  The amount should be the 4K used to qualify for the education credit.

You can change this amount by editing the Education Information section from the Education Summary (screenshot).

Continue until you reach screen where you can change the amount to 4K (screenshot).



Edited 3/12/18 10:53 am

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4 Replies

TurboTax is reducing my qualified higher education expenses for a 529 plan by $10K but the expenses applied to the AO Credit are $4K. Where does the other $6K come from?

The $10K is something TurboTax added. It's not scholarship money from 1098-T; that's accounted for elsewhere already.
MarilynG
Expert Alumni

TurboTax is reducing my qualified higher education expenses for a 529 plan by $10K but the expenses applied to the AO Credit are $4K. Where does the other $6K come from?

See Edited answer for a fix to this issue.  Did some research to recreate and correct in Online product.  Thanks for your patience!
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TurboTax is reducing my qualified higher education expenses for a 529 plan by $10K but the expenses applied to the AO Credit are $4K. Where does the other $6K come from?

Thank you! That looks like exactly what I was looking for. Just to check, I am inferring from your screen name that I can take this as an official TurboTax answer. Is that right?
MarilynG
Expert Alumni

TurboTax is reducing my qualified higher education expenses for a 529 plan by $10K but the expenses applied to the AO Credit are $4K. Where does the other $6K come from?

You are correct that TurboTax is reducing qualified education expenses by 10K in error when there is a 529 distribution.  The amount should be the 4K used to qualify for the education credit.

You can change this amount by editing the Education Information section from the Education Summary (screenshot).

Continue until you reach screen where you can change the amount to 4K (screenshot).



Edited 3/12/18 10:53 am

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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