Client has a 1099Q and 1098T do I have to alter or manually subtract anything?

[shf1957]

I entered the 1099Q and then went to the taxpayers  work sheet for the 1098T and entered everything on it.   Of course it made part of the 1099Q taxable, which is fine and then stated at the bottom of the work sheet that it lowered  the adjusted qualified expenses.  (Am I to go back up and alter the qualified expenses to that lowered amount on the 1098T or leave it alone and the program does the math it self for me?)

[Frustrated-in-IL]

I am not sure what you are asking.  Once you enter everything on the Student Information Worksheet in Part VI, make sure you enter a maximum of $4000 on Line 17 (assuming you are calculating AOTC).  That should be the only adjustment needed (lines 14-16 are used less often).  The program will make the calculation of the taxable portion of the Q using the qualified expenses reduced by $4000.  If you don't put $4000 on Line 17, the program will use a larger amount to calculate the credit, resulting in lower qualified expenses and thus, more of the Q taxable.

[Terry53029]

Don't forget to add room and board (ON CAMPUS OR OFF) to student expenses. Even though R&B not used for credit, it can be used for distribution from 529 plan as school expense