Hi!! Just following up as I am slowly understanding this calculation. I did indeed claim the tuition credit first on my return. Now to file for my son who currently has no income but will now have to pay on the portion of the distribution that is no longer tax free (he is the beneficiary and his SS# is on the 1099- Q).
I have worked through the Coverdell ESA-taxable distributions and basis worksheet multiple ways and am complete. The one question I have is in Part II. Line 2 where it says, "enter your basis in this Coverdell as of 12/31/2019?" We contributed 2,000 to this account about many years ago and never contributed again and took the first disbursement in 2020. So is the basis only that money (2,000) since it was the sole contribution and before 2020, or it the total amount of the account as of 2019 (which is mostly earnings which I think are tax free)?
Thank you!!
Jen
