I just went through the first round of TurboTax for this year it seems every year it's a little different and how you and when you enter your 1098t 1099q stuff causes weird things to happen.
My daughter is 20 she's a junior she lives at home she commutes. Somehow some way TT suggested I did not need to enter 1099 q on my/wife tax return. Note though we've always entered it and always got the AOC credit.
I click skip Isaas TT suggested I could. I entered expenses ...somehow it prompted me for 1098-T information... I entered that. I also entered expenses for a summer she took it another school that I paid cash for. I entered her books that I paid cash for. Somehow it brought me back to entering the 1099q so I answered that information as well. And in the end it said I qualified for the $2,500 AOC credit.
I figured that was okay since we got the credit the last two years.
However it says she will have taxable income when she files. I don't know what happened. I don't understand how there could be any taxable income so long as we did not distribute from our 529 plan more than what the college billed.
Any thoughts on this. I did not even start to do her taxes yet. Typically she has about $3,500 in income to report from a summer job and that's it. She did get pua this year but I'm not sure what that has to do with anything... Like I said her tax info has not been entered yet.
I don't know why this has to be so incredibly confusing. But I am once again stuck .....thoughts?
