This just became even more confusing. If the 1099-Q (issued to the dependent) goes on the dependent's return (assuming she owes tax on some of the distribution) then exactly what part of the Turbotax interview should be completed on the Dependent's return?
The first reply to the original question made more sense since the education credit goes to the parent and if the dependent goes thru the same Turbotax interview screens, the error message stated in the first post appears.
It makes sense to report whatever is owed on the Dependent's return as stated in the original reply:
If the student needs to report income, that income amount (only) can be entered as "Other Income" with the description SCH (for scholarship income) or 529 for distribution. The amount (only) may also be entered in the students education section in TurboTax.
It is very confusing coordinating the 1099-Q between these returns along with the education credits.
