Q. Why do I put the $8860 was used for Room and Board if her scholarship money was all used to pay Tuition directly to the university.
A. Because telling TT that you used it for R&B is the easiest way to get TT to treat it as taxable. It doesn't matter how the scholarship money was actually used. At tax time, it is just money in and money out. Do not try to match individual payments to individual expenses. There's one major exception, that was explained in the replies to the original poster: if the conditions of the scholarship are that it must be used to pay tuition, you cannot treat it as taxable income, it must be treated as tax free scholarship. Then more of the 529 plan distribution will become taxable and her tax bill goes up. In that case, answer no when asked if any of the scholarship was used for R&B.
Q. After removing all of her information I can't even make the 1098-T screen show up again?
A. Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary". Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to the section you want to change; tuition, to get to the 1098-T screen..
