I have for my dependent Tuition=$7,584, Rm & Board=$5,671 and 529plan withdrawal=$6,000. TT is only applying the Rm & Board expense against the 529 withdrawal. Shouldn't the excess Tuition (amt over the $4,000 Am Opp credit) also be applied? TT calculates a $73 income amount on line 21 of the 1040 as a result.
This doesn't seem correct given that the withdrawal from the 529 is $6,000 and total qualifying expenses is $13,255 (tuition + rm & board) - $4,000 (tuition used on am opp crdt) = $9,255.
If there are any Scholarships/Grants reported on a 1098-T, these will be subtracted first from Qualified Education Expenses.
Don't forget to add Books and other Required Fees under Additional Expenses.
Here's a detailed discussion that may help you (scroll down to 1099-Q Funds:(
If there are any Scholarships/Grants reported on a 1098-T, these will be subtracted first from Qualified Education Expenses.
Don't forget to add Books and other Required Fees under Additional Expenses.
Here's a detailed discussion that may help you (scroll down to 1099-Q Funds:(
Thank you Turbo TaxMarilynG for pointing me to this information. In my case, there are no scholarships/grants. I am still confused as to why turbo tax is not including the amount of tuition not used by the American Opportunity Credit against the 529 plan withdrawal. I added the expense for books, a few hundred dollars, and that did not change the calculation. Could this be a problem with how the program is calculating these dollars or how I am inputting the information?