The problem as I see it is that TurboTax is using all of the educational expenses and offsetting scholarships when calculating how much of the 1099Q earnings are taxable. Supposed to only use educational expenses/scholarships attributable to the QTP (1099Q). If I do this then much less of the 1099Q earnings are taxable. Adjusted qualified expenses for both under grad and grad amount to $1,000. For Under grad it is $3,000. Grad school comes out as $(2,000). This is due to scholarships. There are no restrictions on how the scholarships are used.
Overriding TT is not easy and there are many places that I need to override. Then when I do the TT Smart Check I get warnings about my overrides and leads me to believe that the electronic filing will fail or that I might have missed other overrides I should have made.
