The gist of my question is different. I have entered both the 1099-Q and 1098-T for 2 college students. I have more than sufficient qualified expenses for what distributions were taken. Turbo Tax is inappropriately taxing only the earnings portion of the distribution (which can be found on line 8 of schedule 1, for your review). In my particular case, my income is too high to take advantage of an Education Tax Credit.
Will someone please help resolve this issue. I can't imagine I'm the only person having this problem. I believe it is internal to the program in how it handles earnings on 529 plans. We shouldn't have to guess or eliminate tax forms in the program to get the correct result.
