I am trying to figure out how to calculate the Adjusted Qualified Higher Education Expenses applied for Purposes of Regular Tax that is on the Form 1099-Q page 3 printed from Turbo Tax. This amount is different than the amount used for purposes of 10% additional tax. I have entered all of the 1098-T as well as 1099-Q into my return and for some reason the Page three form is calculating an adjusted amount which is considered Additional Income from Schedule 1, line 10 that increases my AGI. However this income is not taxable as the amount was used to pay for education expenses.
I support myself so the 1098-T and 1099-Q are on my return.
1098-T
Box 1 $13,331.62
1099-Q
Box 1 - $13,711.76
Box 2 - $5,583.74
Box 3 - $8,128
Additional expenses are $895.
Additional income that is not taxed is $1,419 as the Adjusted Higher Education Expense applied amount is $10,227 (this is the number I am trying to figure out how to calculate)
