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Distribution amount in 1099-Q form is twice bigger than the expenses reported in 1098-T form

I made two separate payments in 2019 from 529 College plan directly to my son's college. The second payment was made in December 2019 for the first semester of next 2020 year. However, 1098-T form only reported expenses that match the first payment. That's why the distribution amount in 1099-Q is twice bigger than expenses in 1098-T. Now Turbo Tax thinks that the difference is taxable. How can I reconcile this accounting issue between these two forms so that I would not pay taxes on my qualified distributions?

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1 Reply
KrisD15
Expert Alumni

Distribution amount in 1099-Q form is twice bigger than the expenses reported in 1098-T form

Click the "What if this is not what I paid?" link under box 1 on the 1098-T screen and enter the full amount you paid. 

Be sure you adjust again in 2020 if needed. 

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