I have 2 refunds from my son's university that I don't know how to handle in TurboTax. He is 19 years old and was a full time college student in 2022. We paid for his spring 2022 semester in December 2021 so that was handled on our 2021 taxes. Then in early 2022, a scholarship payment was made directly to the university which caused an overpayment. So the university issued us a check in February 2022. The scholarship money was allowed to be used for tuition, books, housing, meals, etc. The second refund was later in the same semester due to a term withdrawal, and the university refunded us for partial housing and dining. My son did return to the university for the fall 2022 semester. We did have a 529 plan distribution which I have already entered in TurboTax. I am now at the question asking "did you receive a refund of qualified higher education expenses?" I think I would answer this "No" because the scholarship was not required to be used for qualified expenses and the other refund was for housing & dining. Here are our numbers (I've rounded to try to simplify):
529 distribution: $4,400.
1098-T: Box 1 $3,500., Box 5 $1,200. (scholarship)
room and board paid in 2022: $5,100.
refund due to credit/overpayment: $1,200.
partial housing/dining refund: $1,300
We have used AOTC previously but I don't know if we can use any of that this year or just the 529 distribution. I definitely need some guidance!
