I have tuition and room and board costs equal to more than my 529 distribution. Therefore why do I have "other income" above my wages?

[Anita01 · Accepted solution]

When you entered the 1098-T for this student, you were asked to choose how much of the expense you wanted too use for the education credits.  If you said all of them, or didn't leave enough to use against your 529 money, then the 529 income becomes taxable.

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