@KrisD15
Thanks for your advice. The 529 distribution was $1681 less than her tuition. When I do the return on TT leaving out the 1099C and 1098T as you had suggested the federal comes back with a refund of $3212 and state tax due $7. The I enter the 1099C first as you had advised and refund is reduced to $1750 and state tax due of $390.
Then I go to see if we qualify for AOTC by entering the 1098T and it says we do and the federal refund goes to $5042 and $390 owed to the stayed the same. Thoughts ? Does this look correct ? When I do the state portion the state drops back down to $7 owed and refund for federal stayed at $5042.
Then when I wrap up the federal portion it says:
Check this entry
Other Income Statement Qualified Tuition program distributions- taxpayer. You can't file just yet due to a recent law passed by Congress. this may mean a better tax outcome for taxpayers like you who have taxable QTP distributions. We can keep working on your tax return and we'll let you know when we can help you finish up your taxes .
Confused. Thanks for the help.
