I was told previously that as long as all 529 distributions are "qualified" I don't even have to address the distribution in tax return since the distribution goes to the beneficiary. That's how I did it last year. This year, I made the mistake of taking out too much so I have to count the unqualified amounts as her taxable income. When TT asks for the amount, do I have to put in the full amount to match the 1099-Q and then itemize all the educational deductions. Or, can I just enter the amount that was "unqualified" and have it NOT match the 1099-Q. The instructions within TT are not clear, and neither are the instructions on the IRS website. THX
