Get your taxes done using TurboTax

Here is the best way to report and then exclude the income since it is for qualified educational expenses.

To report the 1042-S 

1. Open your return in TurboTax 
2. Click on Wages & Income 
3. Scroll down to All Income
4. Scroll down to Less Common Income 
5. Scroll down to Miscellaneous Income, 1099-A, 1099-C 
6. Click start 
7. Scroll down to Other reportable income 
8. Answer yes and record this as 1042S income and then the amount.

Now to exclude it since these are used as qualified educational expenses

1. Repeat steps 1-7.
2. Record this as a 1042S Distribution for qualified Educational Expenses. 
3. Now enter the amount with the minus sign in front of the income
4. You have now reported the 1042S and then excluded the income.

To report the US tax paid:

1. With your return open
2. Click on Deductions & Credits
3. Scroll down to Estimates and Other Taxes Paid\
4. Click on Other Income Taxes
5. Scroll down Other Income Taxes
6. Click on Withholding not already entered on a W-2 or 1099

@yorgo