529 withdrawal for non educational expense because of scholarship

[Hal_Al]

Yes, you have done form 5329 correctly. 

Q.I would need to figure out where to add the 9996 of income. 

A. Make the manual entry on Schedule 1, line 8z.  On the line to the left, type "Taxable portion 529 distribution from 1099-Q". I tried it. It let me enter the amount on lie 8z but nothing on the explanation line. 

To get there in the interview 

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

• “I’ll choose what I work on” Button

Scroll down to:

-Less Common Income

      -Misc Income, 1099-A, 1099-C

       - On the next screen, choose – Other reportable income  

       - On the next screen, click yes

       - On the next screen, you'll get blanks to enter the amount and a description.