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Q. To claim the LLC, it is just enough to enter the 1098-T details in TurboTax and not enter the 1099‑Q at all. Did I get it correct? A. Yes.  Q. How do I properly adjust or allocate the expenses in TurboTax so that only the $3,132 out‑of‑pocket portion is used for the LLC calculation? A. Enter the 1098-T with $3132 in box 1.  Ignore the  instructions to “enter the exact amount that's in your form”.  For an explanation, See item #3 at the "5 points link"*   Even though $5000 of tuition was paid by the 529 plan, you have the option of allocating that $5000 to the LLC and claim the full $8132.  You may allocate other expenses to the 1099-Q, including room & board (even if the student lived at home) and books and a computer.  If there isn't enough of those expenses, the family will almost certainly come out better if you claim the LLC and let the student pay a little tax on a portion of the 1099-Q earnings (box 2).  See example in the separate reply below. The LLC is 20% of tuition paid and not as generous as the AOC.    *Here's a post on the five main points on the  1098-T: https://ttlc.intuit.com/community/college-education/discussion/re-what-do-i-do-with-form-1098t/01/3760212#M63114

Hi Diane, Thank you so much for this information!  I finally rec'd a complete copy of the trust taxes from the CPA (not just the K-1, which he emailed earlier).  Based on the K-1 instructions you referred me to (page 48), I searched for a Statement A-QBI Pass-Through Form and found the amount for the Section 199A Dividends!  It has a different person listed as the owner of the K-1 but since she's the only one who got a K-1 for 2025, that should be an easy error for the CPA to fix.  I appreciate your help.    

I may have figured this out.   In the form view, highlighting 20b and hitting Edit > Add Supporting Details or clicking "+" next to the line opens a window where supporting details can be added. Is this the right way to do it?

That is the correct way to fill in the names on Form IT-203 if your wife had New York income and you did not have New York income. There is nothing for you to fix. Do not try to resubmit your New York tax return. Where exactly does New York "claim" that you did not file? Are you trying to check your refund status on the New York State website? Try entering your wife's Social Security number, not yours. Double check the other information that you enter.  

did you buy it from an authorized retailer?   https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-product-orders/obtain-authentic-turbotax-programs/L1yYfitCw_US_en_US?uid=mikq6w51   either way no one here can resolve license or billing issues, you'll need to call Turbotax   https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/contact-turbotax/L2y9ZKpQB_US_en_US

let's keep this to 1 thread but the verbiage in your other posts was slightly different you're referring to "resolve to zero" or " turn out to have a final value of 0" - what do you mean by this?  are you referring to premium adjustment exactly offsetting the OID?

@kcarterco ,  on the actual form 1116, line 3e is   Gross Income from all sources and it should be generally the same as  1040-line 11 (a)  and (b).  Thus there is really no reason for edit of this entry.   If you look at the editable version of form 1116  --- 1116 Comp Wks. , there is no 3(e). This "Gross Income From All Sources " / world income is only used to compute the ratio of  each foreign source income to world income  to distribute / allocate  the deductions/ interest expenses etc.  This is then  used to compute allocated taxable income  for each  category -- world income  ( generally same as  1040 line 15)  and  ditto for each  foreign income by source.   Does this make sense ?  Or am I totally misunderstanding your issue ?    

I must have missed that and then when I went to try to amend still couldn't get at it.  However, based on your comment, I created a new return and did things over again and was successful as you said.  Interestingly, then I could compare the forms...on the 760C form from the original return, it was only partially filled in.  I noticed that it had some numbers in the "Annualized Withholdings Smart Worksheet" that didn't make sense and were not in the 760C of my recreated return.  Once I deleted them on the original return's form, all of the rest of the numbers filled in and I was able to add my income  directly in the Annualized Adjusted Gross Income Smart Worksheet.  Then it shows that I fit an exception to the penalty.   OK..now to decide if I should trust TT to efile the amended return with the 760c or just mail it in so they will return the penalty they charged!  Thanks again.

Qualified Tuition Plans  (QTP 529 Plans) Distributions General Discussion It’s complicated. For 529 plans, there is an “owner” (usually the parent), and a “beneficiary” (usually the student dependent). The "recipient" of the distribution can be either the owner or the beneficiary depending on who the money was sent to. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient". The distribution will be reported on IRS form 1099-Q.  The 1099-Q gets reported on the recipient's return.** The recipient's name & SS# will be on the 1099-Q. Even though the 1099-Q is going on the student's return, the 1098-T should go on the parent's return, so you can claim the education credit. You can do this because he is your dependent. You can and should claim the tuition credit before claiming the 529 plan earnings exclusion (unless your income is too high).  The American Opportunity Credit (AOC or AOTC) is 100% of the first $2000 of tuition and 25% of the next $2000 ($2500 maximum credit). The educational expenses he claims for the 1099-Q should be reduced by the amount of educational expenses you claim for the credit. Room and board (R&B) are also qualified expenses for the 529 distribution, but not the AOC (R&B are also not qualified expenses for a scholarship to be tax free). But be aware, you can not double dip. You cannot count the same tuition money, for the tuition credit,  that gets him an exclusion from the taxability of the earnings (interest) on the 529 plan. Since the credit is more generous; use as much of the tuition as is needed for the credit and the rest for the interest exclusion. Another special rule allows you to claim the tuition credit regardless of whose money was used to pay the tuition. In addition, there is another rule that says the 10% penalty is waived if he was unable to cover the 529 plan withdrawal with educational expenses either because he got scholarships or the expenses were used (by him or the parents) to claim the credits. He'll have to pay tax on the earnings, at his lower tax rate (subject to the “kiddie tax”), but not the penalty.   Total qualified expenses (including room & board) less amounts paid by scholarship less amounts used to claim the Tuition credit equals the amount you can use to claim the earnings exclusion on the 1099-Q.  Example:   $10,000 in educational expenses (including room & board)    -$3000 paid by tax free scholarship***    -$4000 used to claim the American Opportunity credit  =$3000 Can be used against the 1099-Q (on the recipient’s return)   Box 1 of the 1099-Q is $5000 Box 2 is $2800 3000/5000=60% of the earnings are tax free; 40% are taxable 40% x 2800= $1120 There is  $1120 of taxable income (on the recipient’s return)   **Alternatively; you can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. Again, you cannot double dip!  When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry. On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."  ***Another alternative is have the student report some of his scholarship as taxable income, to free up some expenses for the 1099-Q and/or tuition credit. Most people come out better having the scholarship taxable before the 529 earnings. A student, with no other income, can have up to $15,750 of taxable scholarship (in 2025) and still pay no income tax.