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College Age Child credits
Hi-
I hope someone can provide guidance. I have my first child in college and I'm struggling with the 529 stuff. Here is the situation with some simple numbers
Son's tuition: $20000
Scholarship from School: $10000
529 from Grandparent: $10000
Remaining out of pocket for dad: $0
As the parent (not grandparent), I enter in my son as a dependent and enter in the 1098-T information. I tried to enter in the 1099-Q, but Turbotax says that it isn't taxable and doesn't even let me enter in the 529 contribution (that's a good thing).
After entering all of this in the Deductions and Credits section (under Education), it shows that I (dad) had $10000 in expense (which is either a deduction or a credit, maybe?). Anyway, this changes what I get in the refund.
As best as I can tell, I (dad) am getting a deduction/credit even though I had no out of pocket last year (because it came from grandparent 529). Is that correct? Any guidance on how/where to check if that is the case?
Thanks for the help in advance. Generally not to much trouble with taxes, but this one is weird.