IRACPA4U
Level 3
‎02-17-2022 09:30 AM

Taxpayers dependent has 1098T. Box 1(payments received) and Box 5 (scholarships) are the same but ProSeries is calculating an education tax credit based on the full amount of box 1..... I thought the net education expenses were zero then no credit would be calculated...??? 

The diagnostics states that there is a taxable scholarship amount which needs to be added to line 9 of the dependents tax return........

Correct or not correct??

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Skylane
Level 11
Level 11
‎02-17-2022 10:05 AM

Id' be inclined to agree with you... payments - scholarships = zero ......     no credit,  no income,  nada.... any errors missing info?  sometimes you accidentally get a 'phantom'  student info worksheet....  but I'm just tossing anvils in the air.

If at first you don’t succeed…..find a workaround
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IRACPA4U
Level 3
‎02-17-2022 10:15 AM

I removed the education information from the return. Deleted the forms and re-entered from the 1098T.  Same result. Education Credit calculated.

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taxiowa
Level 9
Level 9
‎02-17-2022 10:29 AM

Mine works just fine.  Are you making any other entries on the student info worksheet?  And is box checked to be claimed by other?