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The program should have counted it as part of the 529 plan expenses. It is a qualified education expense for a 529 plan.
https://www.irs.gov/newsroom/529-plans-questions-and-answers ( Question #4)
It did not, it only took books off of the taxable amount.
did you report the computer expenses?
can you share some of the numbers that makes you believe TT did not deduct the computer expenses from the 1099-Q?
the expenses don't come off 'the taxable amount'; they come off the BOX 1 entry. What did you mean by 'the taxable amount'?
Let's say the 1099-Q distribution was $5,000 (Box 1) and $1,000 (box 2) and you had $3000 of qualified expenses and that is all. Then that would leave $2,000 or 40% of Box 1 with no expenses (i.e. too ,much was distributed). that would mean that 40% of the $1000 from Box 2 would be taxable.
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EY11
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