I am on board with your calculation of $392 as the taxable portion of earning attributable to the $1133 portion of the distribution not covered by expenses. In effect, the taxable portion of the scholarships increases the QEE.
At the time of the withdrawals I had not considered any of the scholarships as taxable.
As to the taxable scholarships of $2450, earlier in our string you had advised to enter, on student's return, the 1098-T with $2450 in box 5 and nothing in box 1 (and enter no other numbers). I could not figure out how to enter 1098-T information specifically in Turbo Tax. I entered the $2450 in the Student Information Worksheet, Part V, Line 4. This was scholarships required to be used for room and board (the $2450 was not). The $2450 ended up in line 1 of the 1040 with a SCH description, along with $5000 in W-2 income.
The $2450 was included in the Standard Deduction also. I noted in the Less Common section of Wages and Income, Childs Income Under Age 24 indicated no Kiddie Tax form (8615) was required because investment income was less than $2200. I was under the impression that taxable scholarships were considered unearned income for Kiddie tax purposes. The Form 8615 is titled "Tax for Certain Children Who Have Unearned Income.
My question is did I enter the $2450 in the right place, and did I end up with the proper result re Form 8615?
Please advise.
