1) Box 1 $5594.10
2) Box 5 $1500
3) Not sure which form you are referencing with. " what did you enter on your tax return for Box 1 and Box 5, respectively (should net to $4000). " I completed form 8863 for two students one with approximately $17000, and the other student with the above listed numbers. they both qualified for an education credit using the first $4000 of tuition to earn $2500 in tuition credits. (100% of the first $2000, and @20% of the next $2000= $2500)
4) I DID NOT enter anything for either daughter. nothing for the daughter that paid $17000 in tuition because she did not have to pay tax this year- she did not have as much unearned income as the second daughter. Nothing for the daughter in question because it appears based on the wonderful responses I am getting , that any "balance" remaining from the tuition paid ($5594.10 - the $4000 used for the education credit $1594.10 cannot be used to offset the taxes owed from approximately $3200 in unearned income.)
