Hi, I wanted to run this by the experts as I am trying to maximize my American Opportunity Credit. I have heard that Turbotax can be glitchy when figuring this out.
Currently, Turbotax desktop is showing an AOTC credit of $1,869 on my tax return. I was hoping to get the full $2,500 but cannot seem to find where in TurboTax I can make an adjustment to pay some income tax on 529 distributions to reach the 2,500 credit.
Also Turbotax is not allowing me by using the Step by Step to add any taxable 529. I guess this is possible by amending the 8863 form directly.
The form 8863 p2 shows
27 Adjusted qualified educational expenses 27| 1,869.
28 Subtract $2000 from line 27. If zero or less enter 0 28| 0.
29 Multiply line 28 by %25 (.25) 29| 0.
30 If line 28 is zero enter the amount from line 27. 30| 1,869.
Here is some information on my case:
1098T
Box 1 $11,099.02 (Qualified Tuition Payments)
Box 5 $2,666 (Scholarships)
1099-Q
Box 1 $20,428.15 (Gross Distribution)
Box 2 $10,684.71 (Earnings)
Box 3 $9,743.44 (Basis)
Additional Expenses
Expenses for Books and Material required to be purchased from the school: $925.13
Room and Board: $11,175
Computer: $1,764.47
The 1099-Q was issued to my (the parent’s) social security.
The scholarships my son received were applied directly to tuition by the university. They were to be used for tuition only, otherwise I would have had my son claim them as income on his tax return.
My son's total 2024 income was $2,242.66
I am filling married jointly for 2024 and AGI is $114,608
Thank you in advance for your help.
