Turbo Tax is not allowing me to input qualified education expenses from my 529 plan withdrawals.

[taxnightowl]

Just got the latest updates from 2026.02.26 -- still broken. This is absurd.

[talltodd]

There's been another update on 2/27/26. 

[SanJack]

Several weeks ago when I entered the 1099-Q in deductions & credits under education walk-thru, there was a step under the 1099-Q to enter qualified education expense. I didn't have that info at that time. When I went back in to enter it, that section of the 1099-Q disappeared.  Again since I'm the grandparent a 1099-T is not sent to me. The only work-around I could find was to enter it on the Forms (top right corner). Will they be adding it back to the 1099-Q section of the walk-thru? 

[taxnightowl]

Even with updates yesterday, Feb 26, and today, Feb 27, these issues still aren't fixed.

[user17722369292]

Same here.  Even with today’s update, i can’t enter my tuition and  R&B expense to offset the 529 distribution

[Hal_Al]

It's working on my  desktop Deluxe.  Several online users have reported that' it has been working for several days.

You may need to check the box that says "had education expenses other than tuition"

[user17722369292]

Can you tell me where is that option is located within TurboTax?    I was able to put in my R&B expense by going to Forms - ESA_OTP_WKS

[taxnightowl]

Yes, the interview is finally fixed and populates the "Student Information Worksheet" and "Person on the Return" forms correctly as it did in prior years.

But the ESA_OTP_WKS form is not populated - strange, because I agree that form seems more appropriate.

(Aside -- in navigating through looking for these things, I see lots of silly typos throughout the program, e.g., "Select an existing Person on the Retun (sic) Worksheet." It seems pretty clear TurboTax QA is very lacking.)

[user17712589979]

It is STILL not fixed as of 1 March, post 27 Feb update.  TurboTax online.  Last agent tried to pin it on tax changes - told them nope, nothing changed on this aspect, this is a turbotax software problem that has never been there in the past 3-5+ years.  Absolutely unreal with only 6 weeks to file.

[ron8]

Same thing is happening to me....it's a known issue for Oregon...not sure if you live in Oregon too or if it's an issue for more than one state....I am all done with my taxes and waiting for this so I can file for about 3 weeks now. I brought it up to their attention via screen sharing and talking to their technical support and tax experts and they advised if I said that my son went to both high school and college the window opens to add expenses and you can enter them...like it did for my daughter who is in high school...It does work but I am nervous about using since the window says to only enter primary and secondary expenses and later I can enter expenses for college...but of course the window never opens...so I am still waiting for them to fix the problem so I can enter the expenses in the correct window, college...

[user17724683315]

The connection to AR state return is broken as of 3/2/2026. When I click fix return, it just puts me in a loop about TP first name and says "state calculations have not been fully updated yet to reflect these changes." 

[user17724935295]

We received refunds from the college this year but used them for other Qualified Expenses.  I have been tracking everything.  Do we still have to denote the refunds and then get charged tax on them?  Thanks

[Hal_Al]

Q. Do we still have to denote college refunds and then get charged tax on them? 

A. Simple answer no.  A refund of money you paid for something is just a lowering of the price you paid for the item, whether it be clothes (for example) or tuiton.

However it depends on the details. For example, If you got a refund off excess tax free scholarship, that would be reportable scholarship income. 

Used them for other Qualified Expenses, would depend on what you're calling qualified expenses. Books and a computer would usually be qualified expenses. Room and board, transportation and clothing would not  

[joebob8000]

I realize that if all my 1099-Q distributions are for qualified education expenses than its a wash and I guess i don't need to enter it into TurboTax (desktop premier), however, that just doesn't seem right.  And if someone wasn't paying attention, they could get burned on this.

Why does the interview not understand that the total expenses matches the total distributions.  I am entering values in the room and board and books and computer categories, but if i look at 1040 line 8 I see additional income and the Schedule 1 I see a portion of my distribution as taxable.  Looking at the QTP computation of taxable distribution, it looks like it is reporting exactly a 10,000 excess distribution, but none of my numbers align with the qualified or excess numbers.  

Should i just override the values in the form?  

I'd rather have the tax software I paid for work correctly and accurately.

[TopShelfTax]

@joebob8000 

Are you getting either the AOC or LLC credit.  Look in the student worksheet form and see what is being applied in line 18 towards credits.  This should only be 4k if you are receiving the full AOC credit or 10k if receiving the LLC in full.  It gets complicated what the number should be there if your potentially being phased out on the credit.  I bet your entire 1098qt amount is listed in that line 18 when possibly only some of it should be, or none of it if your not eligible for either of the credits.  The result is that some of your expenses are not being allocated correctly between the credits and the 1099q income.