Thanks again. I will put my trust in TurboTax on this one. Paying tax on the QTP (529) gains (to avoid the double dip) and getting the credit is definitely the way to go. Doing research on the internet it seems there isn't a clear answer on this topic. It makes since that you shouldn't be penalized by having 529 and without getting the credit that is what would be happening. To simplify, 529 Gains = pay taxes on (Line 21) which pretty much eliminates the tax savings of having this and take the credit. It is too bad this stuff is confusing.
