Check to see if expenses are being used to get a credit.
Please go back to the "Education" section.
(Federal, Deductions & Credits, Scroll down to Education).
Get to the "Education Information" section (the
last option on the "Here's Your Education Summary" screen).
Re-answer the interview questions until you get to the last
screen. This screen should show how much of the education expenses are being
allocated to a credit.
If you are eligible for the American Opportunity Tax Credit
(usually the more valuable credit), the credit maxes out at 4,000 expenses, so you
wouldn't want to allocate more than that.
If you are taking the Lifetime Learner's Credit, the credit
maxes out with 10,000 expenses.
If you want all the expenses to be applied to the
scholarships/grants/1099-Q distribution, change the amount to 0.
Type letme into the search box to
see which credits you are eligible for and change the credit you claim if
desired.
You can always go back to this allocation screen and change
the allocation amount.
