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If you're on a PC, open TurboTax and go up to Online-Check for Updates. On a Mac, simply quit and reopen TurboTax. If there are any updates, you'll be prompted to download them. If you can’t update your Windows program try doing a Manual update https://ttlc.intuit.com/community/updating/help/manually-update-turbotax-for-windows-software-basic-deluxe-premier-home-business/00/26041  

The IRS allows you to calculate the RMD for each of your traditional IRAs separately, total them, and then take the entire amount from just one of those accounts (or any combination).   The program, however, processes each 1099-R individually and doesn't know that the RMD from IRA #1 also covers the RMD for IRA #2.   Enter first 1099-R (with large distribution): Open or continue your return. Enter the 1099-R. Look for "Was this withdrawal a Required Minimum Distribution?" as you proceed through the interview screens, and Select "Yes", this withdrawal was an RMD. Look for "How much of this distribution was an RMD?", and Select "The entire distribution was an RMD" (if the whole thing was part of your total requirement) or enter the specific amount that represents the combined RMD total for both accounts. Enter second 1099-R (with smaller distribution): Enter the 1099-R. Look for "Was this withdrawal a Required Minimum Distribution?" as you proceed through the interview screens, and Select "Yes", this withdrawal was an RMD. Look for "How much of this distribution was an RMD?", and Select "The entire distribution was an RMD". Look for "What was the RMD for this account?", and Enter the actual amount distributed from this specific 1099-R (the "small amount"). This will let the program know that the RMD "requirement" for this specific 1099-R was met by the distribution itself.   Checking if you met your RMD: After you enter both 1099-Rs, the program will ask "Did you take the required minimum distribution (RMD) for 2025 for ALL of your retirement accounts?", Select "Yes."

Thank you. My desktop version also finally updated it correctly today (3/5). All the expenses (ie room and board, computer, etc.) are now visible in the step by step portion of the 1098-T questionnaire and correctly accounts for the 1099-Q distribution in my case. 

I found out this tax credit expired. 2024 was the last year. There was legislation put forward to extend it, but it was not passed. Talked to a state rep about it. They basically said the because of the deficit, the state can't afford fully refundable credits like this one so they let them expire. You can chatgpt it and it will give you a pretty thorough and correct explanation, at least it did for me.