incorrect amount of adjusted qualified higher education expenses applied

[esherr]

incorrect number showing up as adjusted qualified higher education expenses applied.

We have more than enough educational expenses listed but it is not recognizing them.  How do I override that number and calculation as we should have any taxable amount to recipient.

[Hal_Al · Accepted solution]

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip! 

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution." 

[KrisD15]

More information would be helpful, but perhaps this will help:  

Type   letme   into the search-box  and then click the "Jump to letme" link

This will show you which credits you are eligible for and allow you to choose between them. 

[esherr]

Thanks.  I realized that I did not put the code at the bottom as 1 distributions.  That seemed to work to make it as non-taxable.  Now I know from you that I do not have to enter the 1099-Q info at all if all of it is nontaxable based on non-scholarship expenses.  I will keep that in mind if that happens again.