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To get the screen to enter Room & Board, answer yes when asked if you have book expenses.
Total qualified expenses
(including room & board) less amounts paid by scholarship less amounts used
to claim the Tuition credit equals the amount you can use to claim the earnings
exclusion on the 1099-Q.
Example:
$10,000 in educational
expenses(including room & board)
-$3000 paid by tax free scholarship
-$4000 used to claim the American Opportunity credit
=$3000 Can be used against the 1099-Q
Box 1 of the 1099-Q is $5000
Box 2 is $600
3000/5000=60% of the earnings are tax free
60%x600= $360
You have $240 of taxable income (600-360)
However, If you know that the total qualified expenses (after adjusting for grants & credits) was more than the box 1 amount on the 1099-Q; then don't enter the 1099-Q at all. When the taxable amount is zero, nothing goes on the actual tax return sent to the IRS
To get the screen to enter Room & Board, answer yes when asked if you have book expenses.
Total qualified expenses
(including room & board) less amounts paid by scholarship less amounts used
to claim the Tuition credit equals the amount you can use to claim the earnings
exclusion on the 1099-Q.
Example:
$10,000 in educational
expenses(including room & board)
-$3000 paid by tax free scholarship
-$4000 used to claim the American Opportunity credit
=$3000 Can be used against the 1099-Q
Box 1 of the 1099-Q is $5000
Box 2 is $600
3000/5000=60% of the earnings are tax free
60%x600= $360
You have $240 of taxable income (600-360)
However, If you know that the total qualified expenses (after adjusting for grants & credits) was more than the box 1 amount on the 1099-Q; then don't enter the 1099-Q at all. When the taxable amount is zero, nothing goes on the actual tax return sent to the IRS
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