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Account shows I pulled roughly 20k from 529 and about 5k was earnings which it is showing as taxable. I had 20k in college expense so I think this should offset it and none should be taxable but turbotax is showing I do not qualify for education expense. Is this correct? I am showing it all on my return instead of my childs. I can't think I should owe tax because that was the main idea of the 529 but can not figure out what I am doing wrong.
did you post the 1098-T form? if not, that may be part of your problem
if the student is a dependent, the 1098-T is posted on the parents return (as long as Box 5 does not exceed Box 1). If Box 5 exceeds Box 1, then the form goes on the student's tax return.
also, TT will ask about room and board, books, etc, that is important as well to get the tax return correctly posted.
lastly, whose social security number is on the 1099-Q? your's or the students? that is important.
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