TT should NOT apply 10% penalty on 529 distribution in the amount of my scholarship. How do I fix this without overriding?

[Hal_Al]

Yes, you can omit the 1099-Q when none of it is taxable. 

No, you cannot omit it when some of it is taxable but you have an exception to the 10% penalty. 

[Colindaisy]

That's where I'm at, the earnings are taxable but the 10% penalty does not apply.    TT doesn't have a work around I can find except to click he was disabled which removes the penalty

[Hal_Al]

If you are the recipient of the 1099-Q, use this workaround (repeated from above):

Enter the 1099-Q first. When you enter the 1098-T, later in the educational section, enter the 1099-Q box 1  amount in both boxes 1 and 5 of the 1098-T.  That should balance everything out. Don't enter any other numbers.  Lying to TurboTax to get it to do what you want does not constitute lying to the IRS.  What you enter is not sent to the IRS.  For easier entry, you should first delete the 1098-T, you previously entered.

If the student is the recipient of the 1099-Q, reply back, for an different way.

[Makers]

‎As a suggestion, see the post of February 17, 2021 at 2:56 PM

[AS Taxpro]

How to enter 1098-T if you are the recipient of the 1099Q but your kid is the recipient of 1098-T 

[AS Taxpro]

How to go to "Forms" with TT Online?

[Hal_Al]

Q. How to enter 1098-T if you are the recipient of the 1099Q but your kid is the recipient of 1098-T.

A. You are allowed to enter the kid's 1098-T on your return.  If needed, it can be entered on both returns, with adjustments.  Be sure you enter the 1099-Q before you enter the  1098-T> 

[Hal_Al]

You cannot use the forms mode in online TT.  

You can view the 1040. For instructions, see https://ttlc.intuit.com/community/tax-credits-deductions/discussion/why-is-the-child-tax-credit-not-...

[AS Taxpro]

Sorry if I ask silly question, so when I tried to enter 1098-T, it always generate me as the student, how can I add the 1098T with the kid as student?

[Hal_Al]

If you entered the wrong student, you'll have to delete all the education info and start over. Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click delete next to the student's name.  You'll then get the "Your Education Expenses Summary" screen again.  Click the "Add a student" button.

Your kid must have been previously entered as your dependent, in the personal info section.