She is a grad student and no longer our dependent. Her tuition and expenses were paid out of her 529, but TurboTax is deducting the $2000 in box 5 from her qualified educational expenses, resulting in excess 529 distributions of $2000. Despite the fact that the entire amount of the tuition in box 1 and her other expenses were actually paid out of the 529, over and above the $2000 scholarship. Is it still ok for her not to include the 1098-T on her return? By the way, per TurboTax, she is not eligible for the Lifetime Learning Credit because she used 529 money for tuition.
