DBK1
Level 2

State tax filing

Thanks.  The problem is that Turbo Tax is reducing 529 plan distributions by $10k (per child) resulting in taxable income on the distribution and a penalty.  There was no way to remove the $10k credit that Turbotax was populating (a known bug). So to avoid a tax (while still entering all 529 plan expenses into turbo tax), I had to increase the expenses by $10k.  I understand none of it gets submitted with the electronic return but nevertheless, you should be able to enter the correct amount - if nothing else but for records.   Hope they fix this.   Thanks