Thank you @NCperson
We already hashed out all my numbers ad nauseam in another thread !
I got frustrated and called upon my former accountant and was able to verify the numbers with her also. Unfortunately she is too booked up to help me finish up my taxes until summer so I thought I'd give this one more shot and started over on both mine and my daughters returns.
At this point I'm just trying to figure out how to enter the offset for the 'AOTC Penatly Exemption'. The final section in turboTax 1099Q form appears to be for this...but the 'add supporting details' feature to enter a value manually does NOT work for the line item in question (2e) - a box pops up for entry but when closing the pop-up form the amount is NOT placed on the main 1099Q form (that is a BUG if I've ever seen one!). Some of the other line items in that section do work and the amounts get carried over to the 5329-T (where the results for penalty/offsets are actually calculated).
Since the 1099Q won't allow me to enter a number my solution is to enter the OVERRIDE into 5329-T part 2 Line 5E manually. This achieves the proper tax treatment for my scenario (ie, it nullifies the 'penalty' on 529 distributions caused by the taking of the AOTC on my (parent) return).
SINCE, as you say, the 1099Q form itself does NOT get transmitted to the IRS, I guess it really doesn't matter if this feature works or not.
BUT, it is a DEFECT in TurboTax 2019 and should be rectified. Can I be the only person in the USA who has this situation and is trying to enter a number is this field? Hard to believe that...
@NCperson - thank you for your reply and for your more detailed help a few weeks ago - you're advice was spot on from day one and I appreciate that you are helping people with this VERY CLUEGY handling of Education Credits in TurboTax 2019.
If you know a better place to make the override to handle the AOTC Penatly Exception please post it here. In the replies from my accountant, she said "Enter this amount on Student Info sheet as AOC exclusion"...I cannot find any such place on the Student Work Sheet to enter such exception information.
By playing around in form mode I found that, in general, the Student Info Sheet will result in entries on the 1099Q...and that entries on the 1099Q in some cases flow directly through to the 5329-T.
At this point I may just have to file and hope for the best.
