There is a bug, my CPA investment adviser who's been in the business over 30yrs and is current on tax law, has many clients who have 529's, proved it to me by using different software in comparison. Turbotax is not properly accounting for 529. It counted 100% of my 529 withdrawal as income, deducted no expenses, and I triple checked entries (which were entered in right places). Look at the forums, they have numerous people posting about how Turbotax is confusing what education expenses are qualified/deductible with the oppty credit (these are not the same thing) and not offsetting 529 withdrawal income properly vs. qualified education expenses deductions (which are ALL expenses, tuition, room&board, books, institution required fees for attending). When very experienced CPA's are showing you how the software isn't calculating properly and others in forums are saying the same thing, there is something wrong with the software.
