Hi Dave,
Thank you so much for your response! I truly appreciate your input on my case.
I think you are right that by adding the income on 1042-S, we are hitting a higher tax bracket, but our total did not reach $180,000. So, does that mean the education expense will not apply anyway? (I had a $13,000 tuition fee with a 1098-T form, he doesn't have a 1098-T form).
And yes, I tried to report 1042-S income and withholding tax using this instruction:
Report Other Income
Open your return in TurboTax
Click on Wages & Income
Scroll down to All Income
Scroll down to Less Common Income
Scroll down to Miscellaneous Income, 1099-A, 1099-C
Click start
Scroll down to Other reportable income
Answer yes
Enter the description and amount
Report the US tax paid:
With your return open
Click on Deductions & Credits
Scroll down to Estimates and Other Taxes Paid\
Click on Other Income Taxes
Scroll down Other Income Taxes
Click on Withholding not already entered on a W-2 or 1099
This is where I saw the big drop from a $4,000 tax refund to less than $200. However, I did not try to add the 1042-S under the education section. I canceled the amendment since I was so confused about what to do.
My goal is to do tax the correct way meanwhile maximizing the tax return refund money to us.
My confusing parts are:
Shall we report it as other income?
Shall we report it as education expenses?
Or shall we report it both as other income and education expenses?
And do we report positive or negative numbers in those sections?
If there is no way to increase the $200 tax refund, that is fine. May I please have another question?
We filed by mailing out all the paper forms, if we do the amendment on Turbotax, how to submit the physical 1042-S form; it has a copy for federal and a copy for state tax return.
Thank you so much again for your time and help!
