Education tax return last checkup

StingerAlex · ‎March 6, 2020

Before I send return I would like to make sure that what I have done is correct. Sorry, this question is the part of another my discussion, but nobody answered there.

Here is the explanation:

I might be wrong, but button "Maximize My Tax Break" is doing the same trick as playing with $4000 split between the returns.

What I did, as Kris said:

1.Put all my other income before educational 1098-T

2.Put 1098-T with all original numbers into my return.

3. Got an advise for daughter to file the tax return.

4.Put all expenses as Macbook, printer, books and e.t.c into my return in education expenses part of the interview.

5. Push "Maximize My Tax Break" button and got an education credit even though I did not pay for tuition.

On her return:

1.Put her W2 because it is more then $400 of earned income.

2. Put 1098_T with all original numbers.

3. DID NOT put any educational expenses on her return.

4. Put all additional scholarships not mentioned by the college in 1098-T.

5. Got the numbers for her to pay to Federal and State.

I did not try to put expenses on her return instead of mine because I might did not quite understand what Kris meant by saying "short cut" - did it relate to my return, or her? Correct me if I am wrong.

But other than this everything is pretty straightforward.

I used the excellent KrisD15 guidance:

1. If the student is your dependent, you enter all the forms (1098-T, 1099-Q) in your program so that TurboTax can do the math.

2. answered above

3. Yes, if you enter the 1098-T you enter ALL the expenses, books and all, room and board too.

Once you're done, your TurboTax program will issue instructions about what the student needs to claim (if anything)

The student may never need to enter the 1098-t on their return even if they need to file

4. Right, again, you enter it (the additional scholarships) so TurboTax can do the math, but if they are taxable, TurboTax will tell YOU in YOUR program that the student needs to file.

Also, be aware that there is a "Maxamize My Tax Break" button. If you can get more credit by having the student claim more tax, it will do that.

Please let me know if my interpretation of what I was advised is correct.