JillS56
Expert Alumni

Get your taxes done using TurboTax

I would just let it go as it calculated.   It may be that for some reason there is tax due on the 529 funds.   Can I explain why, no?    My guess is that is where the $2,200 is coming from.  I also think because the $2,200 is taxable, that made enough available tuition to allow the full $2,500.  You come out ahead $2,400 if the $2,200 is only costing an additional tax of $100.

 

Your $1,000 payment and books, etc. would have to be entered manually as I previously explained.   I would not bother entering it at this time as you received the maximum credit.

 

I am glad it worked out in your favor.