Our situation: Grandparents contributed to our son's IL Bright Start account. We withdrew $ for his education in 2020 (and have the 1099-Q showing that). This 1099-Q amount is less than what shows on our son's 1098t.
On the Federal (deductions & credits - education) section of Turbo Tax I have entered the 1099-Q. Then when I went to enter the 1098t it says "You Can't Claim Tuition and Other Fees" (because our AGI is too high). So I left that out. It also says "You Can't Claim an Education Tax Break - Based on what you've entered so far you're not eligible to claim an education deduction or credit."
Questions:
The state of IL does handle 529 accounts differently (than federal). How do I enter things correctly for our situation? Do I use the item "Distributions from college savings plans", and if so how do I determine if the distributions were included in our federal income?
Thanks much for any help you can offer!
