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TT not calculating 529 excess withdrawals correctly
I own a 529 plan which I am using to pay for my son’s college expenses. I worked through the TT educational expenses section using the interview to input all the info from the 1098-T and 1099-Q. I made two excess distributions, one to account for a scholarship he received (for which the earnings should be taxed, but no 10% penalty applied) and one in which I paid more for his off-campus rent than allowed by the college’s Cost of Attendance (for which the earnings should be taxed and the 10% penalty applied). We receive no educational credits. In part VIII, line 4 of the Student info worksheet, for both columns TT (Deluxe, download) is not calculating the excess distribution amount correctly; it is too low. Suggestions appreciated.
March 2, 2021
6:11 AM