I haven't taken the time to read your long original thread nor do I remember the details.
Based on what you state here, you want to get $7256 amount on line 8r (taxable scholarship) and then, for the 1099-Q, enter $23,827 of expenses and $3205 as tax free assistance. Both will go on the student's return, since he is the recipient of the 529 distribution and the scholarship.
In the educational expenses section, enter the 1098-T with 0 in box 1 and $7256 in box 5. Enter no other numbers. After completing the 1098-T screen, you should be able to exit that section (click on the Deductions & Credits tab) and not risk any entry errors.
In the 1099-Q section, the interview should be straight forward:
- No to beneficiary of ESA
- Yes to receiving a 1099-Q
- You (the tax return filing student) are the recipient, not someone else (a wrong answer here is probably the reason for the strange screen)
- Someone else is the student
- Enter student's name
- Fill out the1099-Q
- No & no to death or disability
- No to transfer to ABLE
- No to refund
- Click Done at the Form 1099-Q Summary screen
- Attended college/vocational school in 2023
- No to loan payments
- non dependent student expenses screen, enter your $23,827 and $3205 amounts.
Press continue. The next screen, summary of distributions, will display the taxable amount. Look for it on line 8z of Schedule 1
