15,319-13,551= 1768. We now know where the 1768 came from.
$15,319 is the qualifying expenses for the 1099-Q (line 20 column 5 of the student info worksheet). $13,551 of the expenses is used for the 1099-Q (to totally exclude the 529 distribution). That leaves $1768 to be used for the AOTC. Note that $13,551 - 6803 = 6748. Explanation: After allocating room and board ($6803) to the 529 distribution, $6748 of other qualified expenses (tuition and books) are still needed to cover the rest of the 529 plan "exclusion". Hence $6748 on line 18 of the student info wks. It's kind of a backed in number. I don't know whether there is another worksheet showing that calculation (maybe the 1099-Q worksheet).
It will probably come out better ($222+/- better), for your student, if you designate $1990 of expenses for the AOTC and pay a little tax (less than $25, rough estimate) on the 529 distribution. But, that can be a little tricky to do in TT.
Try this: Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary". Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to “Education Information”. When you get to the screen titled “Amount Used to Calculate Education Deduction or Credit”, verify the amount you want to use or change it (to $1990). You may reach that screen sooner. Some users have reported not reaching that screen at all, which requires using a workaround.
