On return, I’m trying to determine how TurboTax calculated Line 8-Schedule 1 ($1407). It indicated earlier that the other taxable income from QTP was $1178. Can you help?

[NCperson]

look at Form 1098-T.... subtract Box 1 from Box 5...... is your scholarship greater than the payments? 

[mwgsvz]

I am seeing a similar amount.  My payments are $40K more than line 5.  In the worksheet under Qualified Tuition Program (QTP) Computation of Taxable Distribution, line 1 is the amount of distributions from my 1098-Q.  And then there is a line 2c--adjusted qualified higher education expenses--that is about $10K less than my payments.  What is the basis for that adjustment?

[TeresaM]

IIf this does not completely solve the problem, please let us know which screen and field seems to be having difficulty, so we may better assist you.t is important to enter all the income, then the Form 1099-Q, and then the Expenses and Scholarships ( Form 1099-T section. 

If it is entered out of order, the system may be reserving $10,000 of educational expenses toward an education credit, either American Opportunity Credit or Lifetime Learning Credit.  You may want to see if that leads to qualify for a credit, but if it does not, or if it will cause part of your 529 distribution to become taxable, then yes, it is fine to change that field to zero.

If room and board were paid from the 529 distribution, please go back through the Education Credit section and be sure those were entered.  That is not a qualifying expense for the Education credits but can be used with 529 funds. 

If this does not completely solve the problem, please let us know if you are using TurboTax Online or Desktop/Download, so we may better assist you.

@mwgsvz

[mwgsvz]

Thank you for your reply.  It did not solve the problem.  I deleted and then re-entered forms Q and T in the suggested order.  All values remain the same.  And I can't find a way to change any of the fields to zero.  I am using desktop/download.

[mwgsvz]

Just re-entered everything from scratch.  Identical result.  And no way to zero out anything.  How do I get a refund?

[Cynthiad66]

One more try.  You are using Desktop/CD etc.  You can go to forms mode to see each and every entry on each form.  You can adjust any entry in Forms Mode.  Have you tried that?  I must warn that any override that you make may cause your accuracy guarantee to become void.

OK if you have tried that already and still want a refund, here's how.  Finally, our customer support phone number is 1-800-4INTUIT (1-800-446-8848).

@mwgsvz