Thanks Hal_Al.
I understood the earlier example:
Example:
$10,000 in educational expenses(including room & board)
-$3000 paid by tax free scholarship
-$4000 used to claim the American Opportunity credit
=$3000 Can be used against the 1099-Q (usually on the student’s return)
Box 1 of the 1099-Q is $5000
Box 2 is $600
3000/5000=60% of the earnings are tax free
60%x600= $360
You have $240 of taxable income (600-360)
The above example requires adjusting the number in Box 2 of the 1099-Q (which it seems like Turbo Tax should be able to do) as opposed to deleting the form.
I don't understand the example you just provided so I am going to stick with the best scenario of the six that I originally tried. I had hoped Turbo Tax would look into this. I still believe that something is wrong with the way it is calculating. If I didn't notice it (because of the state taxes) I would have owed over $600 more in federal taxes and $200 more in state taxes. Which in not Turbo Tax 'finding all of our deductions'.
I appreciate your efforts on this.
