The school included room & board in box 1 of the 1098-T amount of $16,596, so that's already in there. I did, however, remember that I had to get my daughter a computer, and that almost $800 should be considered required because most of her classes were online even though she was on campus. So with that added, along with the tuition, room and board, and the books and supplies I'd already factored in, the total expenses add up to $18,357. If we factor in the private $1000 scholarship (which is not reported on any document I've received, btw - it's a memorial scholarship offered by a family associated with her high school - but I've included it so far anyway), the expenses were $17,357. That's just barely less than the $17,915 distributed from the 529 account. So I don't understand why the refund Turbotax is calculating is nearly $2k less when I include the 1099-Q. Should I just delete it, along with the unreported scholarship, since the expenses add up to more than the 529 distribution and I have records to show that if needed?
Is this maybe how the calculation goes?... Expenses of $18,357 minus $2500 AOTC minus $1000 scholarship equals $14,857, which is $3,058 less than the $17,915 distributed from the 529, leaving the $3,058 as taxable?
