Thanks Sharon.
I think why this is confusing is because I had claimed my daughter as a dependent originally, and I entered the 1099-Q (in my name) as well as her 1098-T (even though it was in her name). When I removed my daughter as my dependent in TT, I went from getting a refund to owing money.
Then in Smart check it found 5 areas of concern. The main concern was the 1098-T form was entered and was asking who the 1098-T was for (me or my wife since we were the only others in this years TT, after I removed my daughter as a dependent). So I deleted the form 1098-T because it did not pertain to me or my wife.
Then, since I still had the 1099-Q entered (with me as the beneificiary or owner) there was no data that showed the tuition and educational expenses that I paid which exceeded the amount of funds received from the 1099-Q. It still showed me owing money. I then found a question and answer after the 1099-Q in TT that asks who were these funds for - me, my spouse or "someone not listed here"? I chose the latter and then it asks for my daughter's name and then it opens up a form asking how much was spent on Tuition, Books, Room and Board and Other Adjusments. After inputting the Tuition, Books, R&B, etc., I switched from owing money to a refund.
My next question is, the 1099-Q was about $6200 in Box 1. The tuition and educational expenses paid in 2022 was about $27,000. You mention my daughter (not my dependent this year) can enter her 1098-T on her return "if it is not for the same expenses that were paid from the 1099-Q withdrawal". Since the tuition and education expenses far exceed the funds received from 1099-Q, can she still be eligible for the educational tax credits on her return, even though I entered the educational expenses in the TT questionnaire after the 1099-Q entry on my return?
