Here is a suggested workaround to help avoid a future IRS inquiry:
1. Enter $0 on line 21 of form 1040 with the notation "1099-Q less qualified education expenses". I do this on my own return.
In TT enter at:
- Federal Taxes tab
- Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other reportable income - Enter the notation and zero as the amount
