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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?
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.
Money withdrawn to pay for school expenses, list provided elsewhere in this thread and on the IRS website and, I think in a pop-up window in TurboTax, is NOT taxable.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.
Funds can be allocated in different ways, even the IRS offers suggestions.
It was filled out correctly but the system has a glitch. I went to another tax prep company online and filed with no issues.
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.
You are correct. Taxpayers like yourself are awaiting updates from the IRS concering college fund distributions.
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 was able to finally file my taxes with Turbotax over the weekend so they fixed the glitch that was there.
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.
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.
OK Thanks for letting me know. I will try again today and see if it helps...
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....
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