Room and board to cover 529 distribution

Forum|Forum|7 years ago
June 5, 2019
1 reply
3 views

You really need to fix this issue (search for "I paid room & board with 529 plan distribution..." for explanation. User Tiger17 explains the issue spot on. I got audited by IRA for 2014 & 2015 because your software does not handle it correctly. It took quite a bit of effort to figure it out for 2016. PLEASE FIX or I will stop using your service. This is a known issue that your refuse to address with better interview questions. Shame on Intuit!!!

TurboTax Premier Online

inguanti

Level 2

Hello, paulnaquin. As a fellow user I feel your pain. As best as my "now his own dependent" 22-year old son and I can figure: The T'tax questionnaire seemed to expand to include "Room and Board" after he included Forms 1098-T and 1099-Q on his return with my help on the phone. ...I, too, have written feedback to T'tax that the "Educational Expenses" section needs to be MUCH friendlier and accommodating for parent / student / transfer of "dependent status" scenarios. It gets very confusing.

eckricht

Level 2

Get to "Your Education Expenses Summary" and select edit for student. At the next screen "Here's Your Education Summary", select edit for "Other Education Expenses (for all schools)". The next screen will allow you to enter expenses for room and board, which are qualified expenses for 529 plans within certain limitations. The American opportunity or lifetime learning credit can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA or 529, as long as the same expenses aren't used for both benefits. When you get back to the "Here's Your Education Summary", also edit "Education Information". At the screen "Amount Used to Calculate Education Deduction or Credit", set the amount at $4,000, which is maximum amount for American opportunity Credit. The interview section should definitely ask for this information and not make the user find it or not get the correct deductions.