@MichaelG81
Re: LLC, per TurboTax program I'm unable to use LLC due to income criteria so program automatically selected Tuition and Fees Deduction as best option to maximize tax breaks.
Re: your comment "Try putting qualified expenses for your 1098T. It may tax you for unqualified expenses." I'm not understanding your direction. Box 1 is Qualified tuition (I paid), Box 5 is Unqualified grant based on description (university paid for housing).
So with that in mind, my primary question is: Turbo Tax is instructing me that I can deduct the full $5,500 qualified expenses from Box 1 and my dependent is responsible for reporting the $5,000 grant from Box 5 a) if they exceed education expenses (it doesn't) OR b) if the money was used to pay for non-qualified expenses (it was, for housing). But the IRS is saying the $5,500 qualified expenses are to be reduced by the $5,000 unqualified expenses on my own tax return (which contradicts Turbo Tax).
Hopefully that helps clarify my question and need? Understanding it's difficult to comprehend all the details of a specific situation in a forum 🙂 Thank you!
