This is my first time taking advantage of a qualified distributions for my child's college education from the 529 plan. I received a 1099-Q from Scholarshare for distributions made directly to the University. These distributions should be exempt from taxes; however, after entering the 1099-Q in the "Deductions & Credits" section, I get the following comment after completing the section: "Looks like your 1099-Q is taxable" …"Based on the education expenses you've entered, the student beneficiary must report $XXXXX of taxable income from this distribution"
What is also strange is that the on the summary section under "Education" after completing the section, I can clearly see that Turbo Tax has properly inserted a $0 under "ESA and 529 qualified tuition programs (Form 1099-Q). Is this a program bug, or am I misunderstanding the deductibility of the distribution?
