Q. So when WI is asking for tuition paid with non 529 money, I would report the full tuition since the 529 money was used either for non tuition expenses or taxed as extra income? Is that correct?
A. Yes. The logic is that the tuition credit is not reflected in the Federal AGI (since it's a credit not a deduction). You're not double dipping by claiming the WI tuition deduction.
Caveat: I'm not specifically familiar with WI forms. But the above is the general rule for this situation in most (if not all) states.
