@Hal_Al - while I totally agree with your example, have you run it through TT? I tried it just to test out that TT handles it properly and TT continues to think the $600 of earning is subject to regular tax (it properly does not create the 10% penalty)
while I see your comment that you can not just report it, that moves the control from TT to the Taxpayer and THAT is what causes variation and inaccuracies in reporting. You'd think TT would just request input of the 1098-T and the 1099-Q, ask about the non-qualified expenses (which it does) and be able to figure it out itself....or is there a bug???
any thoughts?
