I'm using the interview in TT, walking through each section. In the Deductions and Credits section, under the Education topic, TT asks me if I received 1099-Q's. I did and entered their info. Something didn't look right. I switched to Forms, looked at schedule 1 and all the money I entered somehow is taxable, and is showing up as other income on 1040, line 8. Yikes! I have had kids in college for a few years and entered 1099-Q info in TT using the interview last year, too. I looked at last year's return and the amount on 1040, line 8 there is $0. Note that the interview has not asked me anything about 1098-T's yet. For the ESAs, I am the owner and receive statements as "me FBO my child". For the 529s, I am the recipient, but box 6 is checked ("If this box is checked, the recipient is not the designated beneficiary"). What am I doing wrong? Thank you in advance.
Addendum: I forgot to mention that the next screen in the interview process says, "Your modified AGI exceeds the maximum, but you should enter your education expenses to avoid paying taxes on your ESA or 529." This didn't happen last year. I was counting on the education tax credits (Am Opp Act, etc) for credits. What happened?
