MollieB
New Member

Education

It sounds like you had a distribution from a 529 plan or ESA to help pay for your education expenses.  You can use your education expenses to take get a credit or exclude the income on earnings distributed from the education plan.  The program is allocating $10,000 of your education  expenses towards getting a credit and the rest towards excluding the income on earnings from the plan.  I think I would just leave the allocation as is.  The maximum expenses you can have towards an education credit (Lifetime Learning Credit) is $10,000.  The remaining $15,871 is allocated toward the earnings which I doubt were that high.  I think the $10K allocation is optimal for you.  

This screen just allows are users who may have lower education expenses to allocate the amount manually that may work best for them.