How do I enter the education expenses in turbo tax so it reduces taxable amount of 529 by what what used for education if my income is too high for 1098-T deductions?

[jenn-ambrosio]

Turbo Tax will not reduce taxable amount of 529 distribution by what was spent on education expenses because it says income to high to deduct tuition expense

[Hal_Al · Accepted solution]

This is a known problem in TurboTax and they will not be fixing it anytime soon.

The simple solution is just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution.  When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. 

Alternatively, go through the education section again. When you get to the screen that says “Here’s your Education Summary”.  Click edit next to “Education Information”. When you get to the screen titled “Amount Used to Calculate Education Deduction or Credit”, verify the amount you want to use or change it to 0.

Reference: https://ttlc.intuit.com/questions/3129346-how-do-i-fix-an-error-where-turbotax-incorrectly-treats-a-...

[peter_michalik]

unacceptable    I am moving my business away from Turbo tax

[Texas Roger]

This is a 10 month old post for a 2017 tax return. It may not apply to 2018.

[jon857]

I've been confused each year and had the same dilemma. TT should have expanded the explanation & guidance by now but it remains a quicksand trap. Finally got some guidance and here is a great link to describing how to proceed:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/7271468">https://ttlc.intuit.com/replies/7271468</a>