<p>I have used Turbo Tax for a few years now to do returns at home for a few people that I want to help out. But I sometimes do the same return at work to see if it gets the same answer. I feel that Turbo tax is only good for quite simple returns and if you really know what you’re doing.</p>
<p>We have used it for 3 years…no real investments, so it’s easy. I couldn’t see paying an H & R block type establishment when they pretty much used the same program. I like how it asks a lot of questions and walks you through deductions, etc.
We had others make mistakes in the past, so far so good with doing it ourselves.</p>
<p>I cannot get Turbotax to cooperate! The IRS Publication 970 has a very useful example regarding using a scholarship (as long as it does NOT have specific restrictions as tuition only, room and board only etc) as taxable income. In other words, the scholarship goes towards room and board (must be shown as taxable income on student’s tax return) which allows the parents to use that amount for Hope credit. In using the online version of Turbotax Home and Business, no such allowance is made. It is very restrictive, says enter 1098-t information EXACTLY as received from college, no changes. This results in no Hope or other credit. Any suggestions???</p>
<p>The way I did it was to to calculate how much of the scholarship is going to be considered taxable because it is being used for room and board. This is put under taxable scholarships under income. When you get to the expenses and it asks for the 1098t details enter them as shown on the 1098T. Then it should ask if there are any additional education expenses not shown on the 1098T. Then the next question s/b “enter any scholarships that should not have been included as income”. You figure this by taking the total scholarships from the 1098 less the amount of scholarships used for room and board. Then turbotax should do the rest.</p>
<p>For example - Say your tuition and fees on the 1098t is $12,000 and Scholarship/grants are $15000. You enter that as is. If you you decide $5000 of the scholarship was used for room and board you show that as taxable income for the student. Then where it asks “enter any scholarships that should not have been included as income”. you put $10,000 (the $15000 scholarships less the $5000 portion you used for room and board). Turbo tax should take the $12000 tuition and fees you entered from the 1098, and deduct the $10,000 non taxable scholarship from it, giving you $2000 tuition and fees eligible for the Hope.</p>
<p>I’m relieved…after sending in my amendment (TurboTax made a huge error for me this year and I had to file an amendment (the day after filing). I was due the Earned Income Credit and TurboTax completely missed it)…I wasn’t ever able to see on the IRS website that they’d logged my paperwork…today I received notification, the correction has been accepted…additional money on its way! Hallelujah!</p>