Form 1099-Q worksheet is showing taxable amount of distribution.

[FOCUSGuy]

Section of the 1099-Q Worksheet: Coverdell Education Savings Account Computation of Taxable Distribution

Line of the 'Coverdell Education Savings Account Computation of Taxable Distribution' section: Line 14 Taxable amount to recipient.  

Scenario:  1098-T qualified tuition box 1 entered in 1098-T worksheet is 5,000

                  1099-Q box 1 gross distribution is 2,000.  

Desired Result:  I want Pro Series to show 3,000 (5,000 - 2,000) as eligible for education credits, and no taxable amount of distribution.  

As far as I can tell, I've entered everything into the 1098-T and 1099-Q worksheets ok.  I must be missing something.  

[FOCUSGuy]

I might have I figured out a solution.  

1. Entered the 2,000 ESA distribution in Part VI Education Expenses, Line 15 Tax Free Assistance of the 'Dependent Student Worksheet'.  

2. Entered the 2,000 ESA distribution in Part IX ESA, Line 6 Qualified Higher Education Expenses applied to ESA distributions also in the 'Dependent Student Worksheet'.  

With these changes I see the 3,000 displaying as the amount eligible for education credits AOK.