How much was the distribution?
Did you get Form 1098-T?
If yes, what is in Box 1 and Box 5?
Did you enter the 1099-Q and then the 1098-T into the program?
If yes, what did the program do with them? (Did it tax and if yes, how much?)
When a distribution is taxable, the tax is only on the earnings.
You should only see up to 21,500 (rounded) as income on Schedule 1 Line 8z.
If you closed the account, without any of the money going to qualified educational expenses, the entire box 2 (gains) amount is taxable and also subject to the 10% penalty.
You say "I can get it to where I’m not getting the 10% penalty". What makes you think you're not subject to the penalty?
What ever you did to make that happens is probably interfering with a correct calculation of the taxable amount (which is $21,500 rounding).
Q. Is it going to my income?
A. $21,500 should go to line 8z of Schedule 1 with the notation "Qual state (or private) tuition prgm from 1099-Q"
Q. Any suggestions on how to enter?
A. You enter the 1099-Q. When asked who is the student, you answer "the distribution was not used to pay any educational expenses"
Sorry did not enter all info. Received a scholarship for majority of the educational expenses (reason we took out leftover funds)
I believe I’m not subject to the 10% penalty if i received a scholarship
Sorry did not enter all info. Received a scholarship for majority of the educational expenses (reason we took out leftover 520 funds)
I believe I’m not subject to the 10% penalty if i received a scholarship. I did receive the 1098-T. Box 1. 17,274.00 and Bix 3. 8,810.00 but part of the Box one is a employer contribution scholarship
Here's quick workaround in TurboTax:
Enter the 1099-Q. When asked who the student is answer: someone else not listed here (lying to TurboTax to get it to do what you want does not constitute lying to the IRS). Enter the student's name when asked. A few screens later, you'll get one simple screen to enter expenses. Press Done at the 1099-Q summary screen, to get there. Enter $45,644 or more of expenses. Also enter $45,644 for the scholarship in the box "Tax-free assistance". This reports the earnings as taxable and claims the scholarship exception. You do not have to deal with the complicated “Educational expenses and Scholarships” (1098-T) section later. TT will prepare form 5329 to claim the penalty exception.
Thank you! I did enter that in that way just seemed like my portion to pay was higher than just the taxable $21000.00 but I will try again thank you