Thanks Jill.. I follow this to some degree. The 529 did not cover all tuition, I had to write a check for the $1,000 to cover the balance. I'm not sure why that would be reportable... Or maybe you mean I need to report it so I can get credit for it towards the $2,500
Nevertheless I started from scratch!!! A whole new return. I lwt it walk me through everything in the exact order it wanted to.
It never gave me a chance to enter the books I bought or $1,000 I paid out-of-pocket towards tuition. Perhaps I I must manually go to the area you described and do that.
However here is the interesting thing....
When all is said and done it awarded me $2,500. It also said $2200 of the 529 was taxable to the recipient. I thought the recipient would be my daughter since it's in her name. But if I understand you correctly since I'm putting it on my return I am the recipient.
IS THIS CORRECT? If so does this then mean I lost maybe a hundred bucks in taxes to get the 2500? I'll take it!
Now, I am not sure how it awarded me the 2500 without me putting in the books or the $1,000 or anything else though. I do you know it seemed to happen after I entered the 529 information. In other words after I entered the disbursement and the basis etc... That's when it told me I get the 2500 and I think right before that is when it told me the recipient has 2,200 in taxable income. I wonder somehow TurboTax looks at the amount I paid the basis etc and in some way shape or form part of that can somehow be considered towards the 4K?
I think I'm just going to let her rip and file it unless you feel something sounds fishy.
