I spoke too soon.
I figured out the problem.
It is a TurboTax problem.
When I enter in my wife's 1098-T which has box 8 checked, Turbo Tax says that my wife is a full time student in 2019 for 1099-Q. This is incorrect. We withdrew from 529 and paid the school in 2019 for 2020 term. When I go to fix the 1099-Q for my wife and put down "none of the above" -- she was not in any school at all in 2019, the 1098-T gets wiped out and removed. If I re-enter the 1098-T, my wife is then marked as full time student which is not correct for 2019. This is a programming error on Turbo Tax's part.
TurboTax is NOT allowing for someone pay tuition in 2019 for 2020 when they have no schooling in 2019.
Please fix this.
