Carl, Farney: THANK YOU. The procedure you described allowed Turbotax to properly offset my 529 distribution against qualified expenses even though my AGI disqualifies me for some of the other credits/deductions. AGI should not affect the basic 529 to qualified expenses offset, including the earnings component. INTUIT: This part of Turbotax 2016 is seriously whacked and may be costing your customers excess taxes if they don't notice that AGI includes the earnings part of the 520 distribution but there is not later expense offset. I have gone through the Easy Step on this about 4 times and would be happy to illustrate where the program goes awry.
