Q. How do I actually enter the 1098-T allocation information on two different returns in Turbo Tax? Just edit Box 1 information ? As long as the two amounts add up to the actual Box 1 data?
Theoretically, you can enter the 1098-T, as is, on both returns and TT will come to the right conclusion. But it can get messy.
It's best if you have some idea of the outcome expected, when you make your entries. In addition to entering numbers, you must complete the “Education Information” sub-section. In particular, be on the lookout for a screen “education expenses used for a tax credit”. It will usually be prepopulated (sometimes with $10K instead of the more appropriate $4K). You can change it for the amount you want to allocate to the ed credit($4000 in your case).
So, yes, you can just adjust the box 1 amounts. In that case the “education expenses used for a tax credit” box needs to be 0 (you already made that adjustment).
