turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

Sfonville
New Member

I cannot continue my Federal Taxes (QTP)

Tax experts-

 

You all have stated that we do not have to include the 1099-Q form IF we used it for qualified expenses. BUT what if we are getting an education credit as well? Is there not something about double dipping with that? Isn't that why we are waiting with the updated law in the first place?

KrisD15
Employee Tax Expert

I cannot continue my Federal Taxes (QTP)

Our advice is to enter the 1099-Q, 1098-T and all tax documents. 

 

The software is being updated for a recent change, but the delay should not be much longer. 

 

How to enter a 1099-Q

 

How to enter a 1098-T

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

I cannot continue my Federal Taxes (QTP)

Money withdrawn to pay for school expenses, list provided elsewhere in this thread and on the IRS website and, I think in a pop-up window in TurboTax, is NOT taxable. That's the whole point of funding a 529 for your Little Treasure. Therefore, if you withdrew funds from your 529 to pay for tuition, books, room, board, etc. -- really, things that most people would consider school expenses (but check the list just in case) -- then you didn't have a taxable event, and the IRS does NOT care, so do NOT tell them. Delete the 1099-Q from your TurboTax return, e-file, and get that refund.

 

Now, if you used 529 funds to fund your gap year cruise, that's not really a school-related expense, so it's income, and now you're stuck waiting on that refund, except there shouldn't be such a great refund, should there, what with all that extra taxable income? But from what you have said, previously, unless I'm confusing you with somebody else with the same issue and question, you are a humble grad student spending 529 money as the IRS intended, not a cruiser and a playa, as the Youth of Today are wont to say. In which case, relax, delete the 1099-Q, e-file, relax again, get your refund, and relax one more time.

 

Best of luck in your studies and post-graduation adventures.

KrisD15
Employee Tax Expert

I cannot continue my Federal Taxes (QTP)

Funds can be allocated in different ways, even the IRS offers suggestions. 

 

IRS Pub 970

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

I cannot continue my Federal Taxes (QTP)

It was filled out correctly but the system has a glitch. I went to another tax prep company online and filed with no issues.  

KrisD15
Employee Tax Expert

I cannot continue my Federal Taxes (QTP)

Congress changed what the 1099-Q distributions can be used for, including paying down student loan debt and paying for certain apprenticeship programs. 

It may not affect you, but the software is being updated to reflect these changes. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
DMarkM1
Employee Tax Expert

I cannot continue my Federal Taxes (QTP)

You are correct.  Taxpayers like yourself are awaiting updates from the IRS concering college fund distributions.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
amir1976
New Member

I cannot continue my Federal Taxes (QTP)

President Trump signed the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which aims to improve savings habits in the United States. The legislation expands the benefits of 529 college savings plans, including adding student loan repayments and cost of apprenticeship programs as qualified expenses. The new law applies to 529 plan distributions

I cannot continue my Federal Taxes (QTP)

YES

I cannot continue my Federal Taxes (QTP)

I was able to finally file my taxes with Turbotax over the weekend so they fixed the glitch that was there.

I cannot continue my Federal Taxes (QTP)

I cannot continue with mine either! They even took my credit card info! Said "waiting for another form for my tax situation!" I file standard deduction every year, but this year I also had a gross distribution of my 401K to figure in, that's it! Nothing complicated. Im getting frustrated not knowing where Im at in the process. I thought I was already finished!!!!
Matt07924
Returning Member

I cannot continue my Federal Taxes (QTP)

It is 2/12/20...Is the sw updated?  

 

When I do CompleteCheck, "Qualified Tuition Program Distributions" gets flagged...with this comment...

 

Other Income Statement Qualified tuition program distributions - Taxpayer - You can't file just yet due to a recent law passed by Congress.  This may mean a better tax outcome for taxpayers like you who have taxable QTP distributions.  We can keep working on your tax return and we'll let you know when we can help you finish up your taxes.  

jm3
Level 2

I cannot continue my Federal Taxes (QTP)

This comment used to appear when I did the check, but it disappeared several days ago, and I was able to file my taxes.  I assumed the software had been updated.  Several other posters on this site posted that they were were able to file as well.

Matt07924
Returning Member

I cannot continue my Federal Taxes (QTP)

OK Thanks for letting me know.  I will try again today and see if it helps...

Matt07924
Returning Member

I cannot continue my Federal Taxes (QTP)

Nope.  Still gives me the error.  The amount for "Qualified tuition program distributions" is correct so I know the math should be correct.  

 

Intuit?  Can anyone assist me with this?  I would like to get my taxes filed and out of the way....

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies