For College Expenses, we list-
Books and Materials 1,853,
Room and Board 3,741
scholarships at 333.
So the total minus the 333 scholarship should be $9,315. $4000 was used for the American Opportunity Credit. There should be $5315 left to use as qualifying payments for our 1099-Q (or 529-plan). The 1099-Q is in the amount of $4095, leaving nothing taxable. Turbo tax is only moving over the room and board amount of $3741 to the 1099-Q worksheet leaving my son with a taxable amount of $165. Why doesn't the full $5315 auto fill into the worksheet leaving a taxable amount of $0? Can I manually change this or is turbo tax correct in only allowing the $3741?
Please go back and adjust what the program is allocating towards a credit if the amount is larger than $4,000.
Get back to the "Here's Your Education Summary" screen
(Click Personal, Deductions & Credits, Scroll down to Education, Click Update next to "Expenses and Scholarships",
Continue, Click Edit next to the student's name)
On the "Here's Your Education Summary" screen, scroll down to "Education Information" and click Edit
Continue through the interview and the last screen has the amount to allocate to a credit. For the Maximum AOTC, you would allocate $4,000.
Please be sure to again finish the interview and click "Maximize My Education Tax Break"
OR switch to Forms, look at line 17 of your "Student Info Wk" and change to 4,000