Thanks so much for keeping it simple, and for the extra info at the end about meal plans. I may work that in once I have the first issue solved.
Regarding the first issue, it seems in an effort to "keep things simple" I left out some cogent information. I also had another "direct to school" distribution from my 529 that I didn't mention. Its 1099-Q was:
Box 1: 7235
Box 2: 4164 (earnings)
So.. plugging these into your equation:
$27,166 of qualified expenses
- 14,000 paid by tax free scholarship
= !3,166 of expenses are available for the 529 distribution.
13,583 + 7235 - 13,166 = $7652 is your "non qualified distribution". Since more than that was paid by scholarship, none of the distribution is subject to penalty.
$7652 / 13,583 = 56.3% of the earning are taxable
56.3% x (8006 + 4164) = $6842 of taxable income to be reported on on line 8 of schedule 1
I had actually run those numbers before, but since neither way matched what TurboTax is telling me I figured I'd start with my simplest guess as I wasn't sure which way might be right. Does it make sense to add the calcs from the second 1099-Q (same school, same student)? If so, did I do the calcs right? If so I'll have to monkey around with TT to see if I can make sense out of it.
