Using scholarships to pay for room and board.

[bbphillips]

Son is a 3rd year college student that receives scholarships and grants that exceed his qualified educational expenses so we know he has to pay tax on that amount. TurboTax asked a question like "did student use scholarship money to pay for room and board" and I answered yes and gave an amount. At some point a message popped up that read:
"It Turns Out (Student)'s Scholarship or Grant Counts as Income
That's because scholarships and other education assistance are considered taxable income if they exceed (Student)'s education expenses, if the money was used to pay for nonqualified expenses, or if (Student) was not enrolled in a degree, certificate or credential program at an eligible school. (Student) will need to file a tax return to include this $X,xxx amount as taxable income."
But the amount given does not look right to me.
How can I get back to the window that asked if the student paid for room/board with scholarship money?
I have used the "back" feature numerous times but have not been able to get back to that question.
Any help?

[Critter]

That was just informational on your return and is not sent to the IRS.  What you need to do is complete the education deduction section in your child's return where you will be asked the same questions so you can enter the correct figures there which is the only place it really matters. 

[bbphillips]

But I can't get back to the question that asked something like "Did (student) use scholarship money to pay for room and board" (maybe not exactly worded that way). How can I get back to that question? I have gone back through the interview process a number of times and it does not come up.

[Critter]

If you are talking about in your own return it really doesn't matter since it isn't recorded there so let it go.  If you are talking about in the student's return delete that section and start over.

[bbphillips]

Well, I'm trying to confirm how TurboTax determined how much my son was supposed to include on his tax return when it told me "(Student) will need to file a tax return to include this $X,xxx amount as taxable income.".
 It is different from what I had calculated. I could have done it wrong on what my son owes. If I could see how TurboTax figured this amount I'd have a better understanding of who made an error. Since it specifically asked how much my son paid out of scholarships for room and board I'd like to revisit that question.

[Critter]

Basically the total qualifying costs = tuition + fees + books.    Then subtract the scholarships paid and  whatever is left over is taxable scholarship amounts.  

If you really want to revisit your return then just log in and look at that section again.

If you  no longer see, "Take me to my return/Continue my return" on your account.  To get around that issue, you will do the following:
• Log in to your TurboTax account
• Click on Taxes, and then click on My Tax Timeline
• Locate your 2015 tax return on that page
• Find  "Some things you can do" under your 2015 tax return information
• Choose Add State (you don't actually add one; that's just to get the return to open up.)
• Now you can make any changes necessary in your return.
• You will need to reprint your return before filing it by mail.

[bbphillips]

Critter; thanks. I am aware of what should be the formula.

I"m simply asking how to get back to that question. I have gone back through the interview of that section a number of times and have poked around as much as possible and never seen that question again or the message of how much my son should include as taxable income.

I'd at least like to see the calculations TurboTax used to get the answer. I have not filed my son's or my taxes yet. They are both available to be edited.

Since the program asked me this question once I'd like to get back to it again.
When I entered his information (including answering the question "Did (student) use scholarship money to pay for room and board" (maybe not exactly worded that way), I saw my taxes change and I was given the American Opportunity Credit which I knew I should. BUT the amount that TurboTax said my son should include as taxable income was $2000 less than what I had calculated.

Obviously if my son can include $2000 less on his return then that's what we'll do. But I don't want to be wrong.

[Critter]

Not sure if you can get back to that section, and I highly recommend not messing with a filed return, but if you insist then you will have to delete the education section and enter everything all over again to prompt that screen.

[bbphillips]

OK. I was finally able to find the way back to the section. (I have not filed mine or son's returns yet)
And what TurboTax does is not consistent. Thus my confusion.
Under "Deductions and Credits" "Education Summary" I clicked on "Scholarships and Grants" Edit.
That's the section where it asked how much of the scholarships did my son use to pay room and board (non-qualifying expenses).
Then on the next page TurboTax says my son will need to include this amount on his return which I understood.
But TurboTax gave the wrong amount the first time and that is what caused my initial confusion.
I went back through about 5 times and adjusted or deleted the amounts and watched the results change on the left reflecting how much tax I owed.
When I put in our true numbers TurboTax then gives me the page that tells me how much my son will count as income.
BUT the amount it gives was wrong about half the time.
Had I used the amount TurboTax gave me the first time I think I would have been in error.

[Critter]

OK ... there is a way to get the education credit by indicating that more of the scholarship was used for non education expenses which makes more taxable on the students return but gets an educational credit on the parents return ... it takes a bit of back and forth to see what amounts get the best results.

[bbphillips]

Yes, precisely. BUT the original and remaining problem is that TurboTax is inconsistent in their answer. Same numbers run consistently yields 2 different answers. Same numbers, two different answers. Not once or twice.