Education

did you report the computer expenses?  

 

can you share some of the numbers that makes you believe TT did not deduct the computer expenses from the 1099-Q?   

 

the expenses don't come off 'the taxable amount'; they come off the BOX 1 entry.  What did you mean by 'the taxable amount'? 

 

Let's say the 1099-Q distribution was $5,000 (Box 1) and $1,000 (box 2) and you had $3000 of qualified expenses  and that is all.  Then that would leave $2,000 or 40% of Box 1 with no expenses (i.e. too ,much was distributed).  that would mean that 40% of the $1000 from Box 2 would be taxable.