Hello-
I have been working on my taxes and did as you suggested
You essentially have to use a work around in TurboTax (TT). Here's how I would do it. Enter the 1098-T, on your return, but only enter $4000 in box 1. No other numbers. You only enter the 1098-T to get TurboTax to check the proper box on form 8863. Lying to TurboTax to get it to do what you want does not constitute lying to the IRS.
Enter the 1098-T, exactly as received, on the student's return. Enter book expenses separately. In his interview, you should eventually reach a screen called "Amount used to calculate education deduction or credit" Be sure the amount in that box is $4000. That will put all his excess scholarship as income on his return.
It has left me with this question
now that I have entered all the info on his filing, am I not allowed to enter any of the education expenses on mine? Is putting the $4000 from box 1 (on my form) enough to give me the deduction even though I have made no claim to additional expenses (on my form).
and somewhat related, we had to take advantage of the covid 401k withdraw and it put us above the $180k mark. Do we not qualify for the American Opportunity Credit
thank you for your help
