Get your taxes done using TurboTax

Marcy17,

 

Yes, TurboTax, and also my accountant's software miscalculates the taxable basis of the 529 in conjunction with the 1099-Q/1098-T.  I had the same dilemma, so I called up Vanguard's 529 plan and they told me not to report the 1099-Q or 1098-T if my qualified expenses exceeded the 529 distribution.  There is also a earlier thread on this community pages that states the same and has a link to an article.  

 

Search for 529 and the top hit updated a few minutes ago with help.  Here is a link to the outside article.  

https://www.savingforcollege.com/article/reporting-529-plan-withdrawals-on-your-federal-tax-return

 

Yes, it is frustrating.  I wonder if the actual IRS worksheet is incorrect also?