Hi all, thank goodness its the last year for this education question. This year, I cannot claim my child as a dependent. However, when helping with his taxes I have the same old question regarding how Turbotax causes earnings from a 529 plan to be taxable when entered with the 1098-T and 1099-Q. His gross distribution Line 1 on 1099-Q was less than his actual education expenses. Yet the earnings show up as taxable. What is the best way to enter into turbo tax or is it required to be reported at all? Turbotax wants to apply and give him the lifetime learning credit is that the issue? Since he issued all the distribution for education expenses nothing seems like it should be taxable.
I am grateful this is the last year for this specific question as it seems to come up every year. Any assistance is appreciated.
