My son attended college fulltime in 2021 and I withdrew the funds to pay for tuition and room/board from a 529 account. The 1099-T I received from the school lists the dollar amount I actually paid them in Box 1 and his scholarship amount in Box 5. So Box 1 matches the exact amount I withdrew from the 529 account and none of the distribution should be taxable.
Turbo Tax seems to be reducing the amount in Box 1 by the scholarship amount when determining the amount I paid to the college making a portion of my 529 distribution taxable.
The school filled out the 1099-T as Box 1 ($ I paid) + Box 5 (scholarship) = the total 2021 cost.
TurboTax is assuming Box 1 (total 2021 cost) - Box 5 (scholarship) = $ I paid.
Do I need to ask the school for a corrected 1099-T or is there a way to handle in TurboTax so the scholarship is not deducted from the amount I paid?
