Q. As to $1113 amount, is there any tax significance to that amount?
A. $1133 is the portion of distribution that is not covered by expenses. TT will calculate this number and use it to calculate the portion of the distribution that is taxable*. But, you don't need it. I was trying to give you an idea of what the TT output would be.
All you need to enter is $8882 (or $8862 correcting for the typo) of room, board, and book expenses.
*11247+9861+768=21,876 Total expenses
21876-(10,700-2450)=13,626 not covered by tax free scholarship
13626-3764 (used for credit) =9862 expenses available for 529 distribution
10975-9862=$1133 is the portion of distribution that is not covered by expenses.
(1133 /10,975) = 10.32% the percentage that is not tax free
This means that 10.32 % of the earnings in box 2 is taxable. 0.1032 x 3794 = $392 This is the amount that TT will enter on line 8 of Schedule 1 as taxable income.
