Thank you Hal_Al for the very clear, detailed response. Much appreciated.
* The AOTC has only been claimed for 2 years
*Good to know that she is only eligible for the refundable portion of the AOTC which I understand to be $1,000
* Not sure what the “earned income support question in the personal info interview” means. A form to be completed? She will have earned income of about $29,000 which is more than half of her total support for the year and she lives on her own.
* My daughter is the recipient of the 1099Q and it has her Social Security number noted.
I so appreciate the example of how this would work. Since my original numbers were real, I think we’ll use your analysis and numbers. We have previously put all of the 1099-T, 1099-Q information into the TurboTax online account. Does all of that stay as is? How would we indicate the taxable income of $2956? And what entry needs to be put in to generate TurboTax to recalculate and recognize the AOTC?
Can’t thank you enough for your time and knowledge!
