My confusion lies in how TurboTax calculates education credit vs. taxable distribution: I entered the 1098-T on behalf of my daughter, a student who I'm claiming as a dependent, and I qualified for a tax credit based on the information on that form. When I went to enter in the information on the 1099-Q, all of which should have been a qualified distribution and thereby tax-free, I watched my refund amount plummet. If I can't get both a credit and no taxes taken from my distribution, does Turbo Tax know to give me the greater of the two? Have a done this return correctly by entering both my 1098-T and 1099-Q? Should I have entered them both or one or the other?
