I paid or my son's college tuition in 2025 utilizing a qualified 529 withdrawal (he is the beneficiary and I am the actual recipient). My son is not listed as a dependent. The 1098T confirms tuition payment was about $1000 more than the 529 withdrawal. When entering this information into Turbotax (personal deductions & credits) using the questions posed for the 1099Q and 1098T tax forms, the only way I am not taxed for the 529 withdrawal is if I indicate that it was paid for a "qualified education loan payment" (with 0 loan interest amount). Otherwise, I am taxed for the 529 withdrawal. Am I better off just not entering the 1099Q and 1098T forms, even though those forms are evidently provided to IRS? Or is citing payment for a "qualified education loan payment" reasonable (if no loan interest is declared or expensed on the tax return)? Perhaps TurboTax needs to be more clear in their instructions on this section of their program? Thanks!
