But what if the educational expenses do not fully offset the distribution, so a portion -- but not all -- of the distribution IS taxable? When I input the 1099Q, TT taxes it all and there appears to be no option to input the amount that went to legitimate educational expenses (above and beyond what the college reported on the 1098, which appears relevant only to the tax credits). How do I make sure only the portion of earnings that wasn't attributable to education expenses (QHEE/distribution * earnings subtracted from earnings) is factored into TT's system???
