Hi Hal_AI, Thanks so much for your help.
I do not have the option through the Step by Step to enter the $4,000. I was able to make the change in the Student Information Worksheet. When I go to the federal review option, Turbotax gives the following message:
"We'll make this entry zero that's no longer needed.
Earlier you told us to treat $4,000 as a taxable education in order to claim a larger education tax credit. However, it's no longer beneficial for any amount to be treated as a taxable distribution and used for an education credit, so we'll just make this entry zero."
If I click continue it removes the 4,000 from the Student Information Worksheet and replaces it with zero and my Federal Refund goes from $1,168 down to $675.
Should I just ignore doing the federal review?
Thanks again for all your help.
