Anonymous
Not applicable

Education

There are so many different rules, exceptions, credits, and even definitions of "qualified expense" depending on the circumstances that this section of TurboTax (or almost any program) is probably the most complicated.

 

If you are certain that the income shouldn't be taxable, because it all went to qualified expenses (which for income reported on a 1099Q can include things like room and board) then the very best thing to do is remove the 1099Q completely.  You are only required to enter it if you have taxable income to report (it actually says this on the form itself in the fine print.)  

 

Many people will enter it into the software for assistance making that determination (is it taxable, or does it reduce my credit), but if you already know that's not the case, just delete it and hang on the form with your other important papers.