529 withdrawals added to income even after entering qualified expenses, why?

[mle2jonesem]

None of the prior answers addressed my problem

[BrianH1]

This typically happens on returns where qualified education expenses are entered (usually from a 1098-T) but the income level is too high to qualify for the American Opportunity or Lifetime Learning Credit.

Here's how to work around this limitation:

1. Go back to the beginning of the Education section in the Deductions & Credits section.
2. Select Revisit next to Expenses and Scholarships (Form 1098-T).
3. On the Your Education Expenses Summary screen, select Edit next to Education Information.
4. Answer the questions until you reach the screen Amount Used to Calculate Education Deduction or Credit.
5. On this screen, change the amount to $0 if you're not eligible for any education credits. If you are eligible, subtract your 1099-Q distribution from your education expenses and enter the difference.
6. Select Continue and your program will correct the calculation.

https://ttlc.intuit.com/questions/4451709-why-is-the-529-distribution-from-my-1099-q-showing-up-as-t...