Q. I think you are saying if I subtract 4K from Box 1 on the 1099Q and the amount left over was still less than my total expenses, I need not enter this on my DAUGHTER'S return. CORRECT?
A. Correct.
Q. it did not prompt about the loan?
A. Loans are irrelevant. You do not enter loan money received. What you enter is what you spend money on., regardless of the source of the money (529, loans, out of pocket).
Q. Perhaps TT just took the Payments on the 1098 T, subtracted the Scholarship also shown on the 1098T then subtracted the distribution on the 1099Q...saw the amount left over was great than 4K and that was it. Maybe I did not need to enter the books, summer course etc.
A. That's essentially correct, but in a different order. It took the Payments on the 1098 T, subtracted the Scholarship, subtracted the amount used for the AOC....saw the amount left over was greater than box 1 of the 1099-Q.
Q. Anyway, I need not enter anything on her return correct?
A. Correct. The 1099-Q should not have been entered on your return. But you do not need to delete it. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms
I added another paragraph to my original reply, explaining "recipient".
