Good day,
I have heard there are different opinions on this subject from "Experts"ranging from “there is no time limit” to “you must withdraw the funds before your child graduates” to “the money must come out in the same calendar (tax) year the scholarship was received."
Example
Peter J. Greco, CPA, founder and chief tax strategist at the CSI Group, believes you have more latitude when deciding when to take the scholarship distribution.
“Most believe and have written that the distribution must be made in the same year that the scholarship paid for the tuition expense,” Greco says. “However, IRS 970 is silent as to when the money must be withdrawn.
Since the student doesn't need the money now but will after she graduates, and of course will pay tax on the interest made how would I do this on turbo tax program. Withdrawl info come from on the 1099, so the question is where do i offset it with the scholarships in turbo tax
Thanks
