All,
We withdrew the 529 distribution. Paid the expenses. However, we took out a few hundred more.
I do not want to claim my son as a dependent (due to other reasons) as we don't get any of the credits due to income limits either. As mentioned above, my son does not have to be a dependent to get the credit for these expenses.
But, if I remove my son as a dependent, this software does NOT allow linking the expenses to the 1099-Qs. Since the link is through the list of dependents. This increases the tax amount substantially since it taxes you on the entire gain reported on the 1099-Q, and if you don't go into the forms you will miss it (this is a major issue with TT).
My question is how does one connect the expenses and 1099-Q to each other for TT to calculate the small amount of the tax?
