In the student information worksheet, Turbotax reduces my 529 qualified expense by a scholarship and by $10000 (line 17 - used for credit or deduction). I am not eligible for a credit or deduction, so this appears to be an error. Am I missing something?
EDITED 2/23/19 TurboTax DOES deduct the full credit amount even if you are not eligible. Disappointed that this KNOWN ERROR is still not fixed a year later.
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Yes, you are correct that the 10K adjustment is for a credit/deduction.
If your 1099-Q distribution was used for Qualified Education Expenses, you are not required to enter it in your return.
Click this link for more A Guide to 1099-Q.
Also, if you received a 1098-T and are not qualified for an Education Credit, you don't have to enter it in your return either.
It there is Excess Scholarship shown on your 1098-T the student can report the 1098-T in their return (if they are required to file a return).
[Edited 03/20/2020 | 7:24 PM]
Yes, you are correct that the 10K adjustment is for a credit/deduction.
If your 1099-Q distribution was used for Qualified Education Expenses, you are not required to enter it in your return.
Click this link for more A Guide to 1099-Q.
Also, if you received a 1098-T and are not qualified for an Education Credit, you don't have to enter it in your return either.
It there is Excess Scholarship shown on your 1098-T the student can report the 1098-T in their return (if they are required to file a return).
[Edited 03/20/2020 | 7:24 PM]
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