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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?
May 27, 2021
3:41 PM