It looks to me like after entering the 1098T and 1099Q in the dependents return that TT applies the scholarship credits before the 529 credits resulting in 529 QTP addl income instead of a (more desireable?) scholarship addl income result. Am I reading this right? Most of the guidance I am getting says to apply the 529 withdrawals fully before applying the scholarship credits and don't even enter the 1099Q if fully used. What I don't understand from AmyC's reply below is HOW to enter the 1099T As described in her point #3. The program asks for the expense amt that AOTC is using but I don't understand how to " enter the 1098-T on student return and have it show scholarship income of $3,781 minus books and other supplies."
