I am trying to enter an amount on Line 2e on form 1099Q (Final Section: "Distributions Not Subject to Additional 10% Tax").
Both lines 2c and 2e on this form (in form mode) will NOT allow entry of an 'Add Supporting Details' override. This feature works properly for the other lines in this section (2a, 2b, 2d) which is why I feel this is a Defect in the program.
Entries in this section appear to flow directly to form 5329-T where the 10% penalty is otherwise being calculated. In my case, I'd like to see the amount on 5329T Part 2 Line 5E showing the amount carried forward from the 1099Q Line 2e as a valid AOTC exception for the 10% Penalty (ie "Included only because qualified expenses were taken into account in determining American Opportunity of lifetime learning credit". If you try this, you will see that the amounts entered on 1099Q lines 2a, 2b and 2d correctly flow from 1099Q to 5329-T Part 2 Line 5.
Currently, I am using an OVERRIDE on 5329-T Line 5E to accomplish this.
TurboTax passes checks with this in place so maybe its OK. However, it would be better if the program was corrected if this is in fact a Defect.
Can anyone verify this Bug and/or know how to submit this for consideration?
Is form 1099Q just a 'worksheet' or will that actually be sent to the IRS along with actual forms?
Note: Per my accountant, my tax situation requires filling of the 1099Q (on my daughters form) for 529 distributions in excess of tuition after having claimed the AOTC on my (parent) return (ie to avoid the "Double Dipping" rule). I just can't figure out how to make TurboTax accept the numbers and it seems like a software glitch.
Thank you.
