@vitaasso said " I have learned that bonds cashed and deposited into a 529 the face amount is treated as income to SS and effects the taxable amount. Normally this is not the case but only when deposited into a 529. thanks again."
What is your source for that? I've never heard of that. What is probably happening is that TurboTax (TT) is treating the interest as taxable. When you add more income to your tax return, it affects the amount of your social security income that gets taxed.
Earlier you said "I am taking the interest exclusion on a number US I bonds cashed and rolled into a NY529". Then you said "A few months prior to opening my 529 I cashed some US bonds and DID NOT include or deposit any of those funds into my 529 as it was beyond 60 days."
Those appear to be conflicting statements, or did you have two different sets of bonds?
