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Hal_Al
Level 15

Why does TT say that my student beneficiary must report $$ of taxable income from our 529 distribution?

What I think you are saying is that, working on your return,  TurboTax (TT) is telling you that the student needs to report income from the 1099-Q on her return and is coming up with a different amount based on changes you inputted.   That should not have changed YOUR tax return.  None of those "calculation amounts" were sent to the IRS, as part of your return. If nothing changed,  you do not need to amend

 

The 2nd issue is: what is the $155. You say it is the amount "owed by the student".  My understanding is that TT only calculates the taxable amount of income, not the amount of tax, while doing the calculations inside your return. $155 of income is not enough for a student-dependent to be required to file a tax return. 

 

Furthermore, you cannot just enter the calculated amount (from your return) on to her return. You have to enter the 1099-Q and all the expenses and go thru the whole thing again. 

paquara
Returning Member

Why does TT say that my student beneficiary must report $$ of taxable income from our 529 distribution?

@Hal_Al   Ok thanks.  I think I have it figured out.  I have printed all of the answers you have given to save for next year when I hope to be better prepared!  Thank you for all of your help

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