where do you enter room and board expenses for a college student to help offset the tax on 529 distribution?

[AmyC]

The software development team is working on it. We expect an update soon.  You will want to update software if you are using the desktop.

[Edited 2/16/2026 | 8:13 am PST] @richardm-oloughlin 

[Slobo1]

Still early on 2/13 but the issue has NOT been fixed as of this morning.  I'm using the online version, not desktop.

[dsmccoyd7]

It's not like people just started going to college or using 529 plans this year!  I can't believe Turbotax can't figure this out!

[At_Wits_End_]

Especially because it was just fine last year. Just put it back the way it was.

[richardm-oloughlin]

Thank you for the update.  I understand the issue is still being worked, but is there any idea when the software update will be issued to correct the problem noted in my original post?  It was supposed to be over this past weekend.  Also, I am doing this online, not desktop software.  Will the update automatically come through?  Will I need to delete that section and reenter all the info or will the appropriate boxes come up for me to enter additional expenses that are covered by a 529 plan to offset the withdrawal so I don’t get taxed/penalty taxes on the withdrawal?  Thank you for your response.  

[Mickk6]

Does this mean that turbo tax will automatically update the program when I log on? I am using the desk top version?

[retsin2000]

In my experience TurboTax desktop always checks for an update when you open it. You can also choose to check for updates under the "online" pulldown menu.

I would really like for this update to get released.

[At_Wits_End_]

Same here. I just want to get my taxes filed and be done. 

[WhereisCollegeRoomBoard]

@AnnetteB6 (Employee Tax Expert) responded in other threads the following "The experience described here is expected to be resolved in a TurboTax update to be released by February 27th."

[AnnetteB6]

The experience described here is expected to be resolved in a TurboTax update to be released by February 27th.  

@Slobo1 

[richardm-oloughlin]

Hello, so this issue has delayed me from filing my taxes and getting my return done.  By 2/27 it will be almost 3 weeks.  I did them on 2/9 and spent 2 days playing with the program to see if I made a mistake before reaching out via multiple avenues on 2/11.  It appears turbo tax was made aware of this issue back in late January.  We are now being told a fix is expected by 2/27.  Today I get a text stating I need to file my return before the prices go up on 2/28.  Really???  If this is the case and an exemption isn’t made for me/those waiting on this fix for an intuit turbo tax software issue I will switch to your competitor.  No way am I paying an increase to file on or after 2/28.   After using your online software the last 5 years and the desktop version the prior 10+ years if I am forced to pay a higher price because of this we will be parting ways.  I know I am only 1 person, but you’ve had a loyal/dedicated consumer until now.  This software should have never been released and the fix is taking way too long.  I am sorry, but your quality control leaves a lot to be desired.  

[retsin2000]

Well the update today allowed me to enter room and board expenses. After doing that the figure for total expenses on the interview summary was correct but the expenses on the 1099-Q worksheet in forms was exactly $10,000 less. I added one dollar to room and board to see what would happen and sure enough on the form it went up by one dollar minus $10k. This results in TT still thinking some of my 529 distribution is taxable and none of it should be taxable.

I'm going to just delete my TT file and start all over and see what happens.

In another thread I saw someone complaining that all looked good until they e-filed and then TT removed the expenses again. I can't verify that but I would say be very careful before you file and make sure TT isn't creating taxable income it shouldn't be.

Aaaargh.

[retsin2000]

So I started a new return and entered nothing but one of my student's 1099-T, 1099-Q and additional expenses (room and board, books). Simplifying the numbers a bit but let's say

Expenses = 30,000

Distributions = 26,000

---------------------------------

Looking in the forms view it shows

In the "For purposes of Regular tax" line 2c as $20000 instead of $30000

And an excess distribution of $6,000 which is then transferred as taxable income to my 1040

All of the distribution should be allowed and not taxed.

In the "For Purposes of 10% Additional Tax" column for line 2c it lists the full $30,000

[Hal_Al]

TT has allocated $10,0000 of expenses to the tuition credit.  In the past, TT provided a screen  titled  “education expenses used for a tax credit”. It was usually  prepopulated (often with $10K instead of the more appropriate $4K). You could change it for the amount you want to allocate to the ed credit, including changing it to 0. So far, this year, I haven't found that screen, even after this mornings update.

If you don't get that screen, you can check the student information worksheet. You can change it there (line 17). Make the change in the first column, on the left.