Do what you need to do is easier said than done it seems like this program is all over the place.
In my prior post I think I narrowed down the area to where I need to enter books and materials ...hopefully somebody can tell me which of the three areas I would enter it.
That leaves me with where do I put the amount for the check I wrote towards her tuition?
I assume both of these would be expenses that count towards the 4K that will get me 2.5k credit.
Quick summary she has a T form which I put on my return it shows..
51k payments for tuition... 23k in scholarships. The balance or 28k was paid in two parts one a distribution from her 529 plan of 27k. And finally the last $1,000 was paid by me via a check I wrote. I also had dollars I spent on Amazon for books..
In general I'm trying to find out if I qualify for either of these credits. I run the numbers through the software twice now and one time I seem to get roughly $1,000 credit and one time I seem to get the full 2500. In the case of the latter it says the recipient will have $2,200 more in taxable income. Feels like somehow that might be coming from the basis of my 529 distribution but I'm not in other words perhaps the basis or money I put in somehow in some way goes towards this credit not in any event it sounds like I would need to enter that $2,200 onto my daughter's return... there would be very little tax you would incur doing so but I don't know where to put it on her form. This hasn't happened the first 3 years she's been in school.
Further she's a commuting student and lives at home and I've never put in any expense room and board perhaps this alone could take me to the 4K required to get the $2,500 credit.
