Hi there....thanks for the reply. The last qualified withdrawal was in the same year and my son received a 1099-Q and 1098-T for that withdrawal.
Once he graduated, as the owner, I closed the account. When I closed the account and took the final withdrawal it was a non-qualified withdrawal. Here is my example:
1099-Q
Box 1 - 40,000 Total Distribution
Box 2 - 15,000 Earnings
Box 3 - 25,000 Basis
The Earnings are showing up as other income on my federal return.
Illinois is the issue. The language in turbotax is a bit confusing. It states if the earnings are already included in the federal return not to include it. Per the. reply provided here, it implies I have to identify the amount again so Illinois will penalize me for closing account? What fields in turbotax apply? Also what amounts get reported?
