Get your taxes done using TurboTax
Okay! We do not want to override anything to void the accuracy guarantee.
Instead, work in the program, step-by-step section. It is good to know you are using the desktop program so you can see what is happening.
You paid $45k to the school of which $26570 was tuition. The rest was room and board and required fees. $45 - $26570 = $18,430 to be taken from 1099-Q.
1099-Q of $26,904 -the room, etc of $18,430 = $8,474 to be used on actual tuition. 1099-Q is used up. Do not enter, tuck in tax folder.
1098-T Box 1 Tuition of $26,570 was partially covered by the Q for $8474. Leaving $18,096 to figure out and allocate.
Box 5 scholarships $4334 comes off $18,096 and you still have over $4,000 left for you to claim full AOTC credit.
Just enter the 1098-T as is and avoid the extra hassle. Keep this math and the 1099-Q in your tax folder. If the IRS asks, you will need to prove $4,000 was paid by you.
- Go to federal deductions and credits
- Select Expenses and Scholarships
- Add the 1098-T or select Edit on the Summary screen.
