My daughter is a full time student at one school, also took classes toward her degree at a second one. We got a 1098-T only for her full time school. And the expenses were split in a kind of random way into two 1098-Q forms, one that went to the parent and one to the student. (This happened due to covid house refunds.)
My daughter got a $2k scholarship.
Based on my understanding of the tax rules our best strategy is the following breakdown:
$2150 in expenses allocated to AOTC
$10k allocated to tax free 529
$2k allocated to taxable 529 (because of scholarship)
So if that's right, how do I force TurboTax to limit the AOTC amount to $2150 in costs ($2037.5 in credit, I think)? It just wants to take it all. Can I enter part of the total from the two 1099-Q forms on my (parental) tax return? (That is, the total of the two forms minus 2150?) That would leave $2150 for TurbotTax to apply to the AOTC. But what about the expenses for which there's no form (books, and the school with no form)?
I assume I want the $2k taxed on her return, I do it again? Enter the 1098-T there and then the offsetting 529 expenses, the ATOC claimed?
