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TurboTax is reducing my qualified higher education expenses for a 529 plan by $10K but the expenses applied to the AO Credit are $4K. Where does the other $6K come from?

Forum|Forum|7 years ago
June 5, 2019
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TurboTax Deluxe Online

Best answer by mglauner

You are correct that TurboTax is reducing qualified education expenses by 10K in error when there is a 529 distribution. The amount should be the 4K used to qualify for the education credit.

You can change this amount by editing the Education Information section from the Education Summary (screenshot).

Continue until you reach screen where you can change the amount to 4K (screenshot).

Edited 3/12/18 10:53 am

C

cmurphy533Author

The $10K is something TurboTax added. It's not scholarship money from 1098-T; that's accounted for elsewhere already.

M

mglauner

See Edited answer for a fix to this issue. Did some research to recreate and correct in Online product. Thanks for your patience!

C

cmurphy533Author

Thank you! That looks like exactly what I was looking for. Just to check, I am inferring from your screen name that I can take this as an official TurboTax answer. Is that right?

M

mglaunerAnswer

You are correct that TurboTax is reducing qualified education expenses by 10K in error when there is a 529 distribution. The amount should be the 4K used to qualify for the education credit.

You can change this amount by editing the Education Information section from the Education Summary (screenshot).

Continue until you reach screen where you can change the amount to 4K (screenshot).

Edited 3/12/18 10:53 am