529 Withdraw wrongly included on Michigan Schedule 1 form on Line 21

[ELS62]

OOPS... I failed to read the interview question fully resulting in the error... DISREGARD this posting! 

A 529 Withdraw was entered on the 1099-Q form.  This withdraw was then wrongly included on the Michigan Schedule 1 form... Line 21 resulting in a letter from Michigan Treasury stating the mistake and I then received a reduced refund amount.  The Schedule 1 instructions indicate the 529 withdraw can only be included if the amount was included in the AGI amount.... it was not.  

[Hal_Al]

To make a claim, under the accuracy guarantee, see:

https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-1...

But it only covers actual CALCULATION errors in the program, not user error (and it’s almost always user error), and it only pays any penalties or interest resulting from that error, not the taxes. Either way, you are still responsible for the increase in tax.

[ELS62]

I'm not interested in getting anything from Intuit.  I simply want them to know about the issue, agree there is an issue, and correct it for next year.  I simply don't want this to happen again for myself or anyone.

[Hannah32]

The question is deceptive.  Why would a qualified 529 withdrawl EVER be included in gross income??  The whole idea is that if it is qualified, it isn't considered income.  They should get rid of that question on the Michigan return.  I almost fell into the same trap for over $600.

[ReneeM7122]

You are correct, as long as the tuition expenses are qualified, 529 withdrawals shouldn't be taxable.  Sometimes there could be an exception, however.  For example, if you take the Lifetime Learning Credit and the American Opportunity Credit, it's possible that it could create a surplus that exceeds your Qualified Higher Education Expenses (QHEE).  The excess would be counted as taxable income.