After 1099 Q entry goes from refund to tax due...why?

[aweeks15]

The last piece of info to enter was 1099-Q and up until that point my return showed a refund.  Once I entered 1099-Q info under Deductions and Credits it showed I owe $2K on only $6K earnings for the year.  Why is this?

[Fern]

After you enter the 1099 Q in your tax return, you also need to make sure you also report the education expenses that were paid with these funds. If the tuition and expenses entered are greater than the distribution from the 1099 Q, the distribution will not be taxable.

If the beneficiary of the 1099 Q funds is not someone you claim as a dependent in your tax return, follow these instructions.

Indicate that the payment was for "A beneficiary that's not a dependent on this return" - see screenshot below.

You will be prompted to enter the beneficiary name. Then, you will be directed to a screen where you can enter their education expenses.  See screenshot below.

If the beneficiary is a person in your tax return, select that person and then enter their 1098 T information.

To enter a 1098 T in Turbo Tax:

• Select Federal Taxes
• Select Deductions and Credits
• Select Show More at Education
• Select Start or Revisit at Expenses and Scholarships (Form 1098T)