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@eltibbe , I just tried  a new return with Thailand as my address --- no issue. I used  a Thai bank interest  ( just because I needed some income ) -- no issue.  I am using windows version of Home & Business but all the windows versions should operate similarly.  I also looked up the code  for Thailand that IRS recognizes and indeed it is TH. Thus my only suggestion would be to delete the country code on the entry screen for 1042-S and re-enter  TH, making sure there are no "unprinted" characters, spaces etc. If you are US citizen, living in Thailand , why are they issuing you a  1042-S ?  When I lived abroad for a whole bunch of years back in the eighties, my banks etc. all issued 1099s and not 1042-S.   Is there more I can do for you ?

Are you the student or parent. RESPONSE: parent but she's filling her own return Is the  student  the parent's dependent.RESPONSE: no Box 1 of the 1098-T RESPONSE: RESPONSE: $6025 box 5 of the 1098-TRESPONSE: $3000 Any other scholarships not shown in box 5 RESPONSE: no Does box 5 include any of the 529/ESA plan payments (it should not) RESPONSE: no Is any of the Scholarship restricted; i.e. it must be used for tuition RESPONSE: no Box 1 of the 1099-Q RESPONSE: her grandparents received this, they were the ones who funded the account Box 2 of the 1099-Q Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)? RESPONSE:  I will check, but the money was sent from the account to the school Room & board paid. If student lives off campus, what is school's R&B on campus charge. If he lives at home, the school’s R&B “allowance for cost of attendance” for student living with parents. RESPONSE: this is a local university, where the vast majority of students live off campus Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers RESPONSE: negligible How much taxable income does the student have, from what sources RESPONSE: she worked part time Are you trying to claim the tuition credit (are you eligible, your income is not too high)? RESPONSE: she would like to, her income is relatively low Is the student an undergrad or grad student? RESPONSE: undergrad Is the student a degree candidate attending school half time or more? RESPONSE: undergrad degree and in school more than half time Thanks!

Thanks very much for your response. I'm still mulling it over, but so far, seems to me the situation is more straightforward: part of her tuition was paid for by the scholarship, the rest by 529 funds paid directly from the fund to the school on her behalf (she being the recipient ). She's filling her own tax return. I assume TT is unaware that the remaining funds in box 1 of the 1098T form was paid using non-529 funds,  and is assigning her an AOC. Sounds like she's not entitled to that credit (correct?), in which case where/how do I adjust TT to ensure she doesn't get a credit she's not entitled to?  And does she need to file a 1099Q?   Thanks!

@joywyx0 , generally agreeing with my colleagues @Opus 17  and @dmertz  on their excellent responses to your specific question, I would just like to add: (a) while there is  article 17 of US-China tax treaty that refers to taxability of pension income allowing  the distributor country to tax the  income, there is no clearly articulated  as to whether the resident country can also tax the same income or not.  Obviously if this does happen then " elimination of double taxation" clause will come into focus. (b) please note that if you have lived in USA as a resident for a longtime ( 7-10 years ), when you leave the country, you will need to get "sailing permit" --- this generally entails US collecting or get assurance of being able to collect  taxes due  ( and/or may be due at a later date  including the use of Mark to Market ). Hence my general comment would be , if you do plan to leave the USA in the near future ( one to two years ) , consider planning the tax side, simplify / dispose  of US holding etc. using the services of a Tax Professional  familiar with International Taxation, especially persistence post departure.  There are too many "ands" ,"ifs" and "buts", "not-withstanding" etc. in this future scenario.  A very careful walk is suggested so as to minimize tax surprises.  IMHO Xie-Xie   pk  

So, going with option @AmeliesUncle suggested, it seems to be working and it did ask if this was the Main home and doing the 500k deduction. However, I am hitting another issue.   On the pages where it asks - the asset cost and land cost & asset sale price and land sale - what needs to be entered? I assumed it wants to separate out the building and land - cost/basis, sale and expenses. If I separated everything and entered it. For some reason, TT doesn't subtract the building cost/basis from building sale price - thus showing me a bigger gain than I have.     If I ignore Land values and enter everything combined under asset. It calculates gain correctly but seems to mess up and increase the depreciation for the current year.

@DefLepp , I see .  However, I would hasten to add that perhaps your CPA in India should have tried both ways   ( indexed and non-indexed ) and see which reduces your LTCG  and therefore the total Indian income tax.  I have had a similar case earlier in the year.   I say this because  (a) US while recognizing the full amount of Foreign Income Tax paid, it  generally expects  that the tax payer has taken all legal steps to reduce the tax outlay; (b) Foreign Tax recognized is ONLY the in come tax on the capital gain and nothing else i.e. any "cess" etc. are disallowed for purposes of  double taxation article; (c) the allowable  FTC for the tax year is the lesser of allocated  ( ratiometric i.e. foreign source income  OVER world income ) US tax AND actual paid foreign tax.  This is not TurboTax issue -- it is the law .   See  IRS Pub 514 --->  Publication 514 (2024), Foreign Tax Credit for Individuals | Internal Revenue Service; Topic no. 856, Foreign tax credit | Internal Revenue Service Generally the limit of credit allowed for the year is based on IRC 904 -- really should read / be familiar  with  IRC  901  through 906 See  here --  >  26 U.S. Code § 904 - Limitation on credit | U.S. Code | US Law | LII / Legal Information Institute   Is there more I can do for you ? Namaste ji