Why isn't TT Calculating AOTC to Fully Offset Total Tax?

[Hal_Al]

No,  I haven't seen a solution to that, other than deleting all educational info and starting over and there's no guarantee even then.  If I remember right, the 1099-Q should be entered before the 1098-T.

Since you are using download/desktop software, the easiest method may be to override the entries on the student info worksheet.  That may prevent e-filing*.  Change  line 18 to 6526 (6748 -222**) and line 17 to 1990.  You can "cancel override" if that doesn't work.  

Alternatively, change line 18 to blank and line 17 to 1990.

* Making entries on the forms prevents e-filing.  I'm not sure about worksheets

** the difference between 1990 and 1768

[JL_Kosa]

In case others are searching for my related issue, just wanted to say thanks @Hal_Al for the tip about Editing the Student Education Info.   The page titled "Choosing a larger education credit" allowed me to effectively decline the AOTC.  Here's why I needed to do that:

TT wanted to give me the AOTC, except we only qualified for about 10% of it due to income limits.  Our 529 distributions were exactly what we paid for all qualified education expenses since we weren't planning to reduce distributions by 4000 to use for AOTC.   After entering 1098-T, 1099-Q, and all education related expenses, TT was giving us a $75 in AOTC credit, but then was adding $3500+ to our income, taxed at 22% is a $770 additional tax.   By entering $0 in the Amount Used to Calculate Education Credit, I now have a refund that is about $700 more.   Seems like a bug in the system, but I really appreciate your suggested work around!