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Education
These gimmicks can get a little trick in entering in TurboTax. Reply back for details, once you decide what to do.
The IRS actually encourages use of this technique, to claim a tuition credit. From the form 1040 instructions: “You may be able to increase an education credit if the student chooses to include all or part of a Pell grant or certain other scholarships or fellowships in income. For more information, see Pub. 970, the instructions for Form 1040 and IRS.gov/EdCredit". PUB 970 even has examples of how to do the “loop hole”.
The same technique can be used to switch expenses to a 529 distribution.
March 17, 2023
1:17 PM