TT interview: How to enter 529 withdrawal to pay high school tuition

[dlk8433]

At the beginning of the TT interview, I entered my daughter's biographic info. TT Deluxe knows she's 15. I used money from her 529 account to pay high school tuition in 2021. During the interview though, it seems TT treats her like she's in college.  "Was she working towards a degree program? Has she had a felony drug conviction?" Yes, I received a 1099-Q. No, I don't have a 1098-T; she's in a small, private school. How do I enter her info and ensure that TT treats the withdrawal as non-taxable?

Hey, TT, here's a hint for creating more customer-focused software: if you see a dependent child is 15 and the user wants to enter a 1099-Q, maybe there should be a fork that first asks, "Did you use 529 or ESA funds for elementary or high school tuition?" and then go from there.

[Hal_Al]

Just don't enter the 1099-Q,  if your student-beneficiary has sufficient educational expenses (including high school tuition) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax (TT) will enter nothing about the 1099-Q on the actual tax forms.  That is, TT has no way to tell the IRS that you used the funds for qualified expenses.  Keep you receipts in case of an IRS inquiry. 

If you insist on entering the 1099-Q, TT asks, at the 1099-Q interview, what level of school the student attended*. When you answer High school or elementary, it then gives you a screen to enter the expenses.  It is not necessary to visit the college education expenses section of the program. 

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

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

*Click done at the Form 1099-Q summary screen and the school level question is on the next screen