Still fooling around with how to 'zero out' the 1099-Q.
I had the Form line items wrong in prior posts...
On Form 1099-Q (in Form Mode) - enter in line 2c columns 1 and 2 of section "Qualified Tuition Program (QTP) Computation of Taxable Distribution"
I entered my Adjusted Qualified Expenses, starting with the 1098-T and then deducting the $4000 for AOTC and then adding Books and computed Room and Board charges. This effectively 'zeros out' any additional income and/or penalties. Turbo Tax still shows 1099-Q and 1099-Q Summary forms in the app so I'm thinking those would be submitted (not sure).
@Hal_Al - thank you again for all your input! One more question: Do you think it's better to:
1) Just not include the 1099-Q at all and hope not to get a letter form the IRS (then supply the documentation if you do)
OR
2) Include the 1099-Q now and zero out the charges using the computed qualified expenses and the 'form approach' above. I would think this approach would be less likely to garner any suspicions since the 1099-Q is also provided to the IRS.
I have both options saved and ready to submit one or the other.
