TT-Premier stuck on "Review Your Education Info"

[longtimeuser20]

This is the return for a dependent student.

TT keeps doing

"Review Your Education Info

It looks like you are still missing some education info. We're sending you back to the education topic to review your entries."

Hit "Continue" ->

"Let's Check This Entry

It looks like you're trying to enter the education credits for yourself, but earlier you indicated that you were claimed as a dependent on someone else's return - probably a parent's.

Generally, whoever claims you as a dependent should take the education credits. ..."

Hit "Continue" ->

"Your Education Expenses Summary..."

Hit "Continue" ->

"You can't claim an education tax break..."

Hit "Continue" and TT goes back to

"Review Your Education Info"

PS. The dependent student's 2022 return had the same tax situation but TT-Premier was able to complete without being stuck.

PPS. In the dependent student return, TT incorrectly uses $10,000 of qualified college expenses for education credit in the Student Info Wk (Part VI, line 17 Used for credit) even though neither the dependent student nor the parents are eligible for either AOTC or LLC, making part of 529 distribution taxable to the student. 

[Hal_Al]

Delete the student and start over.  Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click delete next to the student's name.  You'll then get the "Your Education Expenses Summary" screen again.  Click the "Add a student" button.

But, before you re-enter the student, decide whether he even needs to enter anything. 

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. 

You report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2023 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.

You said, "making part of 529 distribution taxable to the student".  The 1099-Q is also an informational document, and does not need to be entered if you know none of it is taxable. 

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. 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. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip! 

References:

1. On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution." 
2. IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.

[Hal_Al · Accepted solution]

If you still need to Enter that stuff:

Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to “Education Information”. When you get to the screen titled “Amount Used to Calculate Education  Credit”, verify the amount you want to use or change it (change the $10,000 to $0).