Thank you again to those who replied....maybe this info will help someone else.
Unfortunately, I am not seeing any way in TurboTax 2019 to 'split' the 1099-T qualified tuition across the returns.
I ran my daughters taxes with and without any 529 distributions and the impact comes down to this:
-the $4618 earned on the 529 is taxable income (10% marginal rate) plus the penalty (10%). This result is $929 she owes on fed tax (her income exceeds the standard deduction)...even if her income didn't exceed the 12,200 standard deduction, the penalty portion would still apply ($461.80; i think). It's still better for me to claim the full 1099-T and take the total $2500 AOTC credit but a 1000 dollar swing here at the end is a little disappointing. I may have to go see a tax professional to see if they have some 'magic' to handle this different....in Turbo Tax I'm not seeing a way to do anything else...not to mention, there is some problem with form 8615 (unearned income) that is 'not ready' yet so we can't even file if we wanted to. What a joke....
This was only for one semester so we're going to be hit double on this in the next 2 years.
If anyone else has any suggestions please respond to this thread.
Good luck to all and Thank you!
