Form 8863 line 27 (adjusted qualified expenses) is not editable and is based on the sum of box 1 of 1098-T plus Other Education Expenses

Forum|Forum|3 years ago
January 29, 2023
3 replies
51 views

Form 8863 line 27 (adjusted qualified expenses) is not editable and is based on the sum of box 1 of 1098-T plus Other Education Expenses. Therefore line 27 is maxed at $4000. I am filing the tax return as an independent student and need to put a smaller number in line 27 because most of the tuition was paid using 529 plan withdrawal by my parents. My father is a recipient of 1099-Q and reports it in his return. How can I enter the qualified expenses amount that is less than TurboTax automatically generates based on 1098-T?

TurboTax Home & Biz Windows

Best answer by KrisD15

No, the information is entered but neither a copy of the worksheet nor the 1098-T is generated with the transmitted forms. Neither are included in the return.

It is just your way of correcting your out-of-pocket expenses to account for the distribution your father took.

KrisD15

Level 15

Suggest that your father have the funds transferred directly to the school so that the 1099-Q will be properly issued in your Social Security number.

When you enter the 1098-T , there is a link under Box 1 that reads "What if this is not what I paid"

Click that link and enter the amount less the distribution amount your father is claiming.

Usually it is far more advantageous to pay the tax on the earnings of the distribution if this allows you to get an education credit, but if your father is taking expenses to cover a distribution, this is how you would enter it.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

bob241Author

Level 2

Thanks for the detailed answer. It did the trick. One concern though. Turbotax then updated Box 1 on 1098-T Worksheet accordingly, so it differs from the Box1 on 1098-T Form. Is1098-T Worksheet included in the tax return submitted to IRS by TurboTax?

KrisD15Answer

Level 15

No, the information is entered but neither a copy of the worksheet nor the 1098-T is generated with the transmitted forms. Neither are included in the return.

It is just your way of correcting your out-of-pocket expenses to account for the distribution your father took.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"