@Anonymous said "I am curious, because I am a curious person, why TurboTax insists on designating the $7609 which was paid to the university from the 529 plan as funds which were "Used for credit or deduction" when in fact we did not attempt to use the credit or deduction......."
Most people come out ahead claiming the credit and paying a little tax on the 529 or scholarship money; so TT makes that assumption. You should reach a screen titled “Amount Used to Calculate Education Deduction or Credit”, verify the amount you want to use or change it (a lot of users are claiming they're not getting that screen this year. I've reported the complaint to TT)
This seems like an error in the program, one which could result in people paying more tax than they needed to. I suspect most people aren't as willing to dive into the details and question the results of the program like me, which results in them paying more than their fair share.
