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Level 2
posted Jan 31, 2026 7:18:40 AM

Education Distribution bug when entering 1099-Q

If the name of the Payer on the 1099-Q form has a number in it, ex. "State of Rhode Island CollegeBound 529", you will get a error message that the distribution information does not sum correctly "Your box 1 gross distribution must equal the sum of box 2 earnings plus box 3 basis. Make any necessary corrections here."  My numbers are correct on the form and on the screen.  Could also be a length issue, haven't tried that yet

2 6 1514
6 Replies
Alumni
Jan 31, 2026 8:25:32 AM

TT can't handle rounding errors.  If box 1 (rounded) + box 2 (rounded) does not equal box 3 (rounded), you have to force it by rounding one of the boxes the other direction. 

Level 2
Jan 31, 2026 8:48:29 AM

I use exact values, no rounding. 

Also, when I remove the “529” from the name of the payer, the issue seems to go away. 

Level 2
Jan 31, 2026 2:17:02 PM

I am seeing the same thing.  It seems to be mishandling decimals.  If I round the 3 numbers, it seems to work.

What did you mean by "remove the “529” from the name of the payer"?

Level 2
Jan 31, 2026 2:49:10 PM

I have 3 1099-Q's to enter.  The first one had a payer name of "State of Rhode Island CollegeBound 529" and this one have me the error.  I entered the second one as "State of Rhode Island CollegeBound" as I forgot to type 529 in the field.  The second one did not get the eoor.  I then went back to the first and removed "529" from the Payer name and it went through.  I now added "529" to both and it is working......

With all that said, I think you are correct about something with the rounding being off.

Level 2
Jan 31, 2026 9:43:06 PM

I am facing the same problem.

I think this is an Turbo Tax error.

From the 1099-Q,

Box 1. Gross distribution is  $89,793.74, 

Box 2. Earnings is $20,599.82

and Box 3. Basis is $69,193.92. 

But the Turbo Tax blocks me to continue with warning the 'Your box 1 gross distribution must equal the sum of box 2 earnings plus box 3 basis. Make any necessary corrections here'. 

But the calculation is correct as 1099-Q form. 

 

스크린샷 2026-01-31 213809.png

 

How can fix this?

Alumni
Feb 1, 2026 5:36:13 AM

Instead of actual numbers, try entering rounded numbers:

Box 1. Gross distribution is  $89,794

Box 2. Earnings is $20,600

and Box 3. Basis is $69,194