I am no expert but have been really stumped by this, I have the same issue. I took (from my 529) less than I paid to the university so nothing should be taxable. I think the answer for me is on page 2 of the student information worksheet. It appears TurboTax is opting to have me take the American Opportunity Credit, but that reduces how much you can take as a qualified 529 distribution. You can't do both. I don't know if posting this link to another site article will help you. https://www.savingforcollege.com/articles/ask-an-expert-american-opportunity-tax-credit-765
