CF-1040 Issue

Forum|Forum|3 years ago
February 6, 2023
1 reply
1 view

I own the CD/Download version of TurboTax Premier due to some very unique tax situations.

I began my CF-1040 and it added a W2 Worksheet called "Scholarship and fellowship grants." I assume the reason for this is because I added $8665 of my financial aid as income in order to qualify for AOTC per IRS: Pell AOTC 4 pager.pdf (irs.gov). However, this information was already reported in my Form 1040 on line 8 (along with some unrelated funds) as other income from Schedule 1, Line 10, since that $8665 was included in Line 8r. I'm not sure why the CF-1040 is trying to add a W2 worksheet for this, since not only was it not reported on any W2 and since the full amount of line 8 is included in the CF-1040, line 16, "other income." This means that TurboTax is trying to get me to pay twice on the amount of $8665.

Things I have tried:

Delete W2 Worksheet (it immediately comes back as soon as I submit)

Manually modifying the values in Forms (they are all greyed out and unchangeable)

I would appreciate some assistance!

KrisD15

Level 15

To clarify

How did you report the $8,665 scholarship income in the Federal Program?

Did you enter it as Other Income or use the Education Section under Deduction & Credits ?

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

shar11Author

Level 2

The $8,665 scholarship income was reported under the Education Section under Deductions & Credits when questioned if any of that income was used for non-qualifying education-related expenses such as room and board. This automatically added it to line 8. In line 8, the only other income reported was a $13,500 stipend. What the CF form did was pull the entirety of line 8 ($22,165) as it should have, but then it ALSO added a separate $8665 as scholarships and grants income to its own line in the worksheet, causing a double taxation. It did not do this with the $13,500 stipend, which appears to be reported properly.

Thanks for the response.