Thank you. I answered no to the tax-free employer provided assistance question and continued in the education expense section. At the end of the questions, Turbo Tax says that my daughter's education assistance counts as income because scholarships and other educational assistance are considered taxable if they exceed education expenses, if the money was used to pay for nonqualified expenses or if she was not enrolled in a degree program and that she will need to file a tax return. None of these are true. I entered the 1099Q prior to the 1098-T information since that was the order these were presented in Turbo Tax. We had a $4,000 distribution (box 1) in our 529 plan. Qualified expenses were $9,436 (box 1) of the 1098-T and scholarships (box5) are $4,000. The cost of books was $738. The qualified expenses were more than the scholarship and the 529 distribution combined and she was/is enrolled in a degree program at an eligible university. When I look at the student info worksheet on Turbo Tax, some of the questions have not been answered (including part II student info about being enrolled in a degree program etc.), but I went through the entire education expense section and doublechecked that I didn't miss anything on the 1098-T questions also. In addition, my daughter did not have any other income, no w-2 etc., just the $4,000 scholarship from the university, and the qualified expenses are more than the scholarship, so I didn't think she needed to file a return? I had previously received a response to a question that also said she would not need to file a return in this situation. Help! What do I need to change since it does not appear that Turbo Tax has all of the information?
