1099Q

anita1

I need help with a 1099Q . The software is taxing the earnings.

The 1098T has tuition of $15290 scholarship of $5000

1099Q is $982 gross earnings $92

The parents are high income therefore no American Opportunity credit.

The 1099Q form calculates the tuition as $15290 less $5000 less $10000.leaving only $290 as qualified tuition. What is $10,000 that the software is pulling out???

And why?

Just-Lisa-Now-

You need to scroll down the 1099Q worksheet to Page 3 and enter the amount spent in there too. Its clunky, but I think thats where you fix it.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

anita1

Nope that is not it at all. The software automatically places $10,000 as if you paid loans You must delete the 10,000 manually for the 1099Q to work correctly. The 10000 sits in a formula a the bottom of the dependent form. Very frustrating.

Frustrated-in-IL

In addition to what Lisa suggested, you may want to look at Line 18 of Part VI of the Student Information Worksheet. The program likes to be helpful by putting amounts on that line when you don't want an amount there. If this is your problem, just delete it and all will be right in the tax world again.