I am confused by how scholarship funds affect qualified education expenses.
I may have done something wrong. I am a 19-yr old college student living at home.
My college tuition was (for example) $57,000 for the 2021 year.
I received $20,000 in scholarships and aid. Thus, I actually directly paid $37,000 to the school.
My college 1098-T tuition statement lists "payments received" as $37,000 and "scholarships or grants"
as $20,000. I entered that data/form in my return. After entering the form data, I had an unexpected tax burden and looked at the
student worksheet. The "qualified educational expenses" were listed as $37,000 and
the $20,000 scholarship was listed as an adjustment. My $20,000 scholarship was being
subtracted from the $37,000 as though it was being applied to that (already reduced) value.
This reduced my qualified educational expenses to $17,000.
I "assumed" the scholarship would not be applied against (subtracted from) that paid value.
How do I get TurboTax to recognize the actual qualified expenses were $57,000 (if that is appropriate/makes sense)?
(My parent also used 529 funds to directly pay the $37,000 tuition balance and TT may now
think we have withdrawn too much. We did not.)
