I feel like you need to be a forensic accountant to work through this stuff as I made a few corrections based on your feedback, but it still is showing $0 on deductions page under educational expenses and scholarships. The taxes owed has dropped though. Looking at the final page of income / deductions has very strange numbers. I really need to print off all the forms to see what is going on, but it will not let me complete her return as I think I have to have mine completed first? It's saying there are forms not yet released.
Here are the answers to questions you asked (round numbers):
1098T - Box 1 $18k (payments)
1098T - Box 5 $17.5k (scholarships)
1099Q - Box 1 $24k (Distribution)
1099Q - Box 2 $13.5k (Earnings)
1099Q - Box 3 $10.5k (basis)
Room & Board - $13.5k
I'll also delete everything and load it back in the order you suggest. What is strange is the $24k is reported as income....Shouldn't only the 'earnings' at $13.5k be reported since me (father) paid taxes on the basis already?
