dlw91
New Member

TT says I withdrew too much from 529 - these funds were used for qualified expenses

TurboTax is only looking at the amount from the 1098-T to determine how much was spent on qualified expenses.  1098-T only shows tuition and some fees, but not room, board, or books, which are all allowed for a 529.  When I enter the amount from the 1099-Q, it compares that with the 1098-T amount and says the difference is taxable.  How do I tell TurboTax about the valid room, board, and books expenses so it doesn't try to treat the difference as income?