TT - How to enter ESA withdrawals to pay tuition at a NON-QUALIFIED overseas college

[dlk8433]

Using the interview in TT Deluxe, how do I enter an Education Savings Account (Coverdell) withdrawal for a dependent to pay a non-qualified expense (tuition at a foreign college)? Where is the penalty shown?

[Hal_Al]

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

“I’ll choose what I want to work on” button

-Scroll down to:

--Education

  --ESA and 529 Qualified Tuition Programs (1099-Q)

When you fail to enter any offsetting expenses, TurboTax will treat all the earnings (box 2 of the 1099-Q) as taxable and calculate the 10% penalty on form 5329.