As I looked further into it, I believe it has to do with the Education distributions from a 1099-Q entered in screen 14.3.  I am not sure why this would affect the teacher deduction since the 529 distributions did not go towards the teachers unreimbursed expenses and their dependent did have enough higher education expenses.  When I removed the 1099Q info it allowed the teacher deduction.  I feel like it is just some field I have not entered in the information correctly.