1. Only income is the PERCEIVED income from Scholarships ($10750-7220=$3530)
2. What defines taxable portion of 529? Probably my stumbling block requiring child to file since payments were made in December and not processed until January throwing everything out of balance. 1099Q shows $11451 gross distributions and based on the numbers above it is definitely above $1100. Does this mean I need to file in childs name for both Federal and state (MD)?
3. No unearned income, see #2
4. None.
5. None.
I keep running through the TurboTax screens and it is not telling me I need to file in child's name anymore, but that message has only appeared inconsistently and that was before I received the updated 1099Q. What screen could help me trigger that message?
New Questions:
A. When Turbo Taxes asks about Refunds of Educational expenses (implying dropped class), should I say yes since we got Room & Board Refund? I keep saying no.
B. 529 could not allocate first refund for Room & Board as a refund because the expense was paid in 2019, and the refund was not received until 2020. How do I allocate this in my college expenses or do I just label it as a 2020 "investment" and move on? If I put that in my Room & Board column, then I show I received more refunds than expenses in Room & Board since I paid Spring 2020 in December 2019, and the Spring 2021 payment was not processed until January 2021, although PAID from 529 in December 2020.
