topic Tax amount due increasing when I select that my child is "enrolled in a program that leads to a degree ...." in Get your taxes done using TurboTax

Tax amount due increasing when I select that my child is "enrolled in a program that leads to a degree ...."

russolivier — Sun, 29 Mar 2020 15:44:23 GMT

Why is TT increasing my total tax owed if I select that my child is "Enrolled in a program that leads to a degree, certificate, or credential" in the Student Information Worksheet. My return already shows I am not eligible for any education credits due to income limits. If I check this box in the Student Information Worksheet as "Yes", my tax goes up by $1736. That is the only box not filled out on the Student Information Worksheet. Any thoughts would be appreciated!

Re: Tax amount due increasing when I select that my child is "enrolled in a program that leads to...

VictoriaD75 — Mon, 30 Mar 2020 22:53:53 GMT

We cannot see your return in this forum, but have you entered information from a 1098-T, and if so, does the document contain scholarships or grants in box 5? It is possible this is being included in your taxable income if you have not entered offsetting tuition or indicated the funds were used for qualified education expenses.

You may want to review your 1040 to see what is changing when you check the box. If you are using a desktop version, you can view in Forms mode. If you are online, follow these steps:

From the menu on the left, choose Tax Tools
Click on Tools
Click on View Tax Summary
Again from the left, choose Preview my 1040
Scroll through the 1040 and note the income, make the change on your return, and review again for the difference

Re: Tax amount due increasing when I select that my child is "enrolled in a program that leads to a degree ...."

pascosus — Mon, 06 Feb 2023 00:30:30 GMT

Does anyone have an answer to this? I just had the same thing happen. I don't understand why my tax bill should be $2365 more because my kid is enrolled in a program that leads to a degree.

Re: Tax amount due increasing when I select that my child is "enrolled in a program that leads to...

AnnetteB6 — Mon, 06 Feb 2023 15:22:10 GMT

You should revisit the Education > Expenses and Scholarships section of your return and verify that everything has been entered accurately.

The most likely reason that your refund would decrease or your taxes would increase is that there is an excess of scholarships or grants reported on Form 1098-T that is not being offset by eligible education expenses. The entry regarding your child being enrolled in a degree program is used to qualify you for an education credit, not to determine whether excess scholarships or grants are taxable.

@pascosus