If I do not want to include my son as dependent (he files his own tax return) but I am the recipient in the 1098-Q and the entire distribution amount (basis and earnings) was spent on my son's qualified higher education expenses.
In this situation, TurboTax seems to simply assume that the distribution was not qualified and adds a substantial amount of tax (and probably penalty as well).
So, my question is: Where do I specify that the distribution was indeed for qualified expenses and hence should not be taxed?
Thanks.
