To clarify this statement of my previous post: So I messed around with my IRA contributions to try to get to the income limit to a point where the answer is close to what I think it should be. Clarification: I utilized a partial traditional IRA deduction to get to the point where I am just over the income threshold to claim the education credit. That way I don't have to worry about the education credit causing the some of my 529 earnings to be unqualified. Then I don't need to input the 1099-Q numbers which Turbo Tax is calculating as fully taxable. Ideally, I could take my full IRA deduction and Turbo Tax would have some way of allowing for the adjustment of the taxable earnings in Box 2 of the 1099-Q.
