In order to cover our son's high school tuition for next year we need to withdraw $20,000 from his 529 plan. This is $10,000 over the high school withdrawal limit. How do I enter this into Turbo Tax? Son is listed at the recipient. This is going to cause him to have ($10,000 - basis) in income, right, not me? The 1099Q will show a $20,000 distribution. I don't see any way in TurboTax to indicate that only ($10,000-basis) of this is income. Can this excess distribution trigger the kiddie tax if he has other income?
The TurboTax interview questions for this situation are insufficient to figure out what you need to do. For example they focus on 1099Ts and high schools don't send 1099Ts. It doesn't mention high school anywhere in the interview.
Maybe the solution is to send one $10K check to the school, and a second one to us? As a way to generate two different 1099Qs?
