I've made withdrawals from a 529 plan that exactly match my qualified educational expenses, but TurboTax is showing taxes due from the 529 withdrawal. When I looks at the calculation in the student worksheet, it appears that Turbotax is applying a $10,000 credit on line 17 of the worksheet to account for the American Opportunity Credit, which I don't qualify for due to my income level, and TurboTax has indicated that I don't qualify for the AOC in messages that I get when completing the education expense section. I suspect that there may be a software error in the student worksheet. Can I just manually update the entry in the student worksheet to correct this, or is there a workaround? Appreciate any help on this!
