Under the recent tax law changes, you can make 529 withdrawals for student loan payments. As I understand it, this was retroactive back to any such payments made since 12/31/2018. I made such loan payments in 2019 out of the 529 account I have set up for my daughter for some small older student loans she had. At the time I thought I would have to pay tax and penalty on those payments but now I should not have to. Problem is my daughter (non-dependent now) was not enrolled anywhere in 2019. We got the 1099-Q from the 529 administrator but I don't see where I can enter these non-taxable withdrawals anywhere in Turbo Tax. There is one input screen that asks you whether you took a tax-free distribution from a 529 plan for payments toward a qualified education loan. I answered "yes". But then it never asked me about the amount details. So right now Turbo Tax is treating the earnings portion of the withdrawal as entirely taxable when I don't think it should be. Any one have any guidance on this one?
