I just spent an hour reading all the TT forum posts I can about 1099Q and 1098T and AOTC but I am just more confused than ever. I've tried entering things multiple ways in TT based on the posts, and every time I do I get something different -- it swings from me owing $1K to getting a $2K refund depending on what order I enter 1098T and 1099Q.
I am 100% sure everything on the 1099Q went toward qualifying education expenses, so what I'm reading is I shouldn't enter the 1099Q in TT at all. Right? That's what seems to trigger all the weirdness in TT.
Regarding the 1098T, all but around $350 in expenses was covered by the 529 plan, so it's my understanding that the AOTC should only equal that amount if we choose to claim it. Right?
But, I can't get Turbo Tax to do that... it only gives me the full credit... which looks like a nice return for us but it sounds like that would have tax implications for my daughter when she files her taxes (she earned around $3K for a summer job). Right?
Questions:
-- is there a way to adjust my AOTC in TT without having to enter my 1099Q (which seems to trigger me owing tax)?
-- if I claim the full AOTC like TT is currently saying, what needs to happen when we file my daughter's taxes?
-- should I consider the Lifetime Learning Credit instead? Would that have any implications on my daughter's taxes?
I know that I can just not put the 1098-T on my return at all, but it would be nice to get one of the education credits (even if it's just a few hundred dollars).
Also thanks in advance to all those who patiently post answers about this issue over and over.
