I am helping my 19 year old, full time student do her taxes. She is listed as a dependent on my taxes. She received money from a Coverdell ESA, a state prepaid tuition program, and a state grant program (let's call them "tuition funds"). The tuition funds were all used appropriately, for deductible education expenses. I entered those, and it says she can't take an education deduction because she's our dependent (right, okay), but that she should enter expenses to avoid paying tax on the tuition funds she received. But then it doesn't offer a place to enter those expenses. By going through the forms view, I was able to enter in payments received by her university, reported on the 1098-T, but I'm not even sure the program is taking that into account, and it never asks for costs for books, etc.
She made $2,005 in income last year. Turbotax says she owes $2,012 in taxes.
How do I get to the right places to enter her expenses so she isn't taxed on the tuition funds?
