Thank you for kind assistance. I think I found my answer from another inquiry. I will answer your questions first before explaining what I did to fix.
Question #1. Yes there are no tax credits on Form 1040, line 29 and Schedule 3, line 3.
Question #2. There are no scholarships or other awards that would reduce box 1 on 1098-T. Box 5 is a State qualified tuition program.
I found a response that indicated there is a glitch with TT. $10,000 ( I don't know where TT got this number) was included on the Student Info Worksheet under Adjustments 'Used for Credit.' My Adjusted Qualified Expenses were lowered by that amount. This caused qualified expenses to be lower than QTP total distributions. A fraction (Adjusted Qualified Expenses/QTP) of the AQE got calculated to determine taxable earnings. To fix, I zeroed out the $10,000 Used for Credit amount. I don't know where the $10,000 came from or why it was used, so I think it is reasonable to exclude.
Thank you again for your response. If you have any other thoughts and time, I would like hear.
