@jmsangro
Q. Why doesn't Turbo Tax do that for you? If you entered more qualified educational expenses that you received in 1099Q distributions why is Turbo Tax including the 1099Q money as income?
A. TT assumes you (or your parents) are claiming a tuition credit and reduces the amount of expenses available for the 1099-Q.
If you know your 1099-Q (box 1) is covered, by enough expenses, just don't enter it in TT.
On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."
