How to report tuition refund reinvested into 529 within 60 days
After paying my daughter's full Fall 2019 tuition from a 529 disbursement in August 2019, in mid-December my child's college received a delayed $3000 scholarship payment and refunded me back that amount of my tuition overpayment (and this scholarship amount is reported on the 1098-T the college sent me). I reinvested the refund back into the 529 within the allowable 60 days, however I received a 1099-Q from the 529 *before* the reinvestment was processed so it reflects an amount $3000 higher. How do I handle this situation in TurboTax so it doesn't calculate a taxable excess of non-qualified 529 disbursements? Do I enter downward-adjusted values on the 1099-Q screen (different from what is on the official form) and if so do I recalculate Earnings and Basis amounts (how?)? Or some other way? Thanks!
