Please advise what expenses from 529 account are considered "Qualified Higher Education Expenses". The IRS publications are not very clear. It's important know to determine if any of the withdrawals could be considered taxable.
Note: I was told by someone at TurboTax that "Qualified Higher Education Expenses" would include such items as: 1) Tuition and mandatory feeds; 2) Books that must be purchased for classes; 3) Room and Board so that the amount is not greater than the amount shown on the college website; 4) laptop + software needed for school
HOWEVER, the TurboTax software appears to be broken as only expense #3, Room and Board, is carried through to cell 2C [Adjusted Qualified Higher Education Expenses] of the 1099-Q form [QTP Computation of the Taxable Distribution] . As a result, the TurboTax software shows that I owe taxes on a sizable portion of the 529 withdrawals - which I know is not correct.
Please advise what is correct.
