Q. I’m still stuck on how to best claim the $1,013 out of pocket qualified expenses. What am I doing wrong ?
A. Your situation is complex and TurboTax is "struggling" to get it right.
You need to use a workaround. When you enter the 1098-T, on your return, enter $1013 in box 1*. Enter no other numbers. The 1098-T that you enter in TT is not sent to the IRS. The numbers are just used for the calculations.
Q. My son’s tax return: Turbo Tax is reporting the excess scholarships and the stipend on line 8 - 'Other income from Schedule 1, line 10'. Does that sound correct?
A. Yes. But, verify that it's on line 8r of Schedule 1. It makes a big difference if it's on line 8z. If 8r, that is correct.
Yes, some of that will be subject to the kiddie (most will be covered by his standard deduction).
Q. I didn't enter my son’s 1098 T information. However, on another screen, Turbo tax asks for the scholarships that my son received ; “ Did xx receive a scholarship or grant in 2022? After I enter the net taxable scholarships ( 14815) in turbo tax , Turbo Tax indicates that we “ can’t claim an education tax break” (ie. American opportunity tax credit ) because the scholarships exceed the education expenses.
A. That only means the student can't claim a tuition credit, on his return. You can still claim it on your return, by entering the out of pocket expenses.
I'm not sure where you're getting $14,815. I get $15,565; $29,712 (28962 + 750) scholarship minus 14,147 expenses. Don't subtract the $1013 you are claiming on your return.
