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Hal_Al
Level 15

529 plan qualified distribution counting as income problem

@sgiitb85  Earlier you asked "I have seen on this forum that if I know that the expenses are greater than the distribution then just delete these forms and not report it. Can I do that?"

 

The answer was and still is yes.  The interview is complicated and it's easy to make mistakes.  Furthermore the program has flaws and you need to know what you're doing  Just delete the 1099-Q and the 1098-T.

 

The 1098-T and 1099-Q are only informational documents. The numbers on it are not required to be entered onto your tax return.  

 

 

529 plan qualified distribution counting as income problem

Hal_Al

 

Thanks for providing the short clear answer.  I was baffled for hours trying to understand why my legit and actually conservative 529 withdrawal to cover tuition etc was being viewed as income.  Actually, I knew why:  TTax refused to let me enter the education expenses that this 529 withdrawal covered, because of income level (itself inflated because of a Roth conversion).

 

SO:  I just deleted all the 1099-Q info I'd entered and now think it's right.  How can TTax be bollixed on this after years, apparently?  If I hadn't "known" something was wrong it was going to cost me $$thousands in overpayment.

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