Have a Tax Question? Ask a Tax Expert
Thank you for giving me the opportunity to assist you. I will give the best answer that I can with the information provided.
Actually, from what you are describing, only $190 is taxable----the taxable amount of earnings is the ratio of the amount not used for education over the total distribution X the earnings. I am not sure where you are getting $412 from. However, if there were any scholarships or grants, or you are using either the american opp. credit (which you should if eligible) or the tuition and fees deduction....you will have to make additional adjustments.
Turbo Tax is not really sophisticated enough to handle these calculations and determine what is best for the taxpayer (even though the company claims they are). For the best bottom line, you should really see a tax professional that is an expert in educational tax benefits.
If you still wish to use Turbo Tax, I can assist you in determining what should be showing up and where---and how to calculate credits/deductions/taxable amounts.
I told you that because it is very difficult to get the right tax calculations and benefits on Turbo Tax without having in depth knowledge of all the tax benefits---in case you wanted to opt for in person tax preparation....
I did also tell you that I would assist you in working through the program---however, if you don't want any additional assistance I will refer your question to customer service.