1) I enter the 1099Q. Do I get all my other expenses in? Probably not since the software really does not direct me to it. I'll look into the form area you describe however there is no excuse for this. Things count or they do not. TT should prompt you. I may try a different product next year. I may even buy HR Block or something this year just to see they handle it. For now. I am filing.
2) While not all my expenses get in(see #1), I believe there is enough there without books and the questionable home room and board. Am I wrong in assuming that if you don't overdraw your 529 (say to go to Disney!) AND you have/your dependent has loans in excess of $4k...you are good to go? That is my situation tthis year and last; freshman/sophomore years... and MAYBE junior year. Senior year is where I'd need the room and board.
RE:
Consider this... one household has a 'Magic College Room and Board jar' on the shelf. The parent told the student, "Put $500 per month cash in this jar to cover your Room and Board while living here to attend college". And then added, "I trust you so I won't have to check every month. I will use this money to pay for the space I could rent out, the utilities you use, the food you eat, etc". The parent then concluded, "And of course if you or anyone else in the family needs money for anything they are free to take money out and use it as needed". At the end of the year, the parent checked and there was no money in the jar. However, the parent kept a nice spreadsheet tracking these payments from their child. One parent used $500 per month for 9 months, totaling $4500 for the school year - more than enough to offset the deduction for the AOTC qualification on the parents return! So you can see in this case, the student CLEARLY had Room and Board expenses, even though they are not reflected on any form!
Again, I don't know. I mean we obviously have expense. If not in school they'd be working and hopefully in an apartment! BUT...I can also see the IRS questioning mom's magic cookie jar...and asking how Donnie Jr managed to pay $500 a month when their W2 shows they only made $2800 for the year.
This seems such basic stuff. Why don't we see any response for TT in these questions. They need to do better.
I am not sure I follow your math on getting the $4k. My thoughts are this...maybe they are wrong:
1) Take 1098-T Box 1 and subtract Box 5. Example: Box 1 payments = $40K. Box 5 scholarships = $22K. Balance is $18K.
2) Subtract 1099Q Box 1. Example 1099Q - Box 1 shows $11K . Subtract $11K from the $18K in step 1. You have $7k. FYI, The $7K in payments might be cash out of packet remitted to college or loans the family or dependent took out - Example - many kids get Federal Unsubsidized loans.
3) If Step 2 is more than $4k you get the credit.
Am I wrong?
4) If you are close to the $4K, Do you have additional expenses likely not captured by TT because of the poor interview process:
Ex: Books
Ex: Courses at other institutions paid out of pocket.
.
.
. and the questionable room and board!
