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Level 1
posted Jun 4, 2019 4:05:09 PM

Why is Section 529 QSTP Gross Distribution from 1099-Q showing as Miscellaneous Income if it is offset completely by Education expenses?

I entered Section 529 QSTP 1099-Q in Miscellaneous Expense.  Every penny was used for Qualified Education Expense.  Yet, the entire Gross Amount is shown as Miscellaneous Income (Not even just the Earnings piece).  Why?  Also I have read other responses to this question in the Community that says if Distribution was entirely for Qualified Education Expense, don't enter 1099-Q at all in TurboTax.   What do I do??? 


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1 Replies
Intuit Alumni
Jun 4, 2019 4:05:11 PM

The 1099-Q is entered under "Deductions & Credits" in the "Education" section. 

Delete the 1099-Q from MIscellaneous income and enter in Education.

Click Federal

Click Deductions & Credits

Scroll down to "Education" and click "Show more" to open

Scroll down to ESA and 529 qualified tuition programs (Form 1099-Q) and click Edit

Enter the 1099-Q and answer the interview questions