Yup. I am finding that Turbo tax does not seem to know what to do with the 529 distributions. We ended up having to do amended returns for 3 years. We did the forms in the order that the program prompted us to and ended up paying over $4000 in taxes we shouldn't have. The payments were e transferred to our account to pay to the university. Every penny went to the university and I have all the receipts. We had the forms from the university that we paid more than our 529 funds in qualified expenses. But Turbotax said our income level disqualified us from claiming any educational deductions and counted it all as income. That's not how a 529 works. I have used Turbotax for 16 years. I will not be this year. I really wish they would get this figured out. I'm on parent forums for both my kid's universities. Many parents talk about this problem with the 529 and Turbotax.
