My dependent son is a senior at university. We were fortunate that he earned scholarships and last year, made the determination that his 529 had a sufficient balance that we could withdraw funds from the 529 equal to his scholarship. My expectation is that the earnings for this withdrawal would be taxable, but there would be no penalty, and TurboTax has treated it as such.
Now for the complication. Payments made to the university for his tuition were in his name, so he received a 529. I made the withdrawal equivalent to the scholarship amount and I received a 529. When I did my taxes, the 1098-T from the university and both of our 1099-Qs were entered on my tax return. I have done it this way each year that he has been at university. Everything seemed to be on track, until I realized that TurboTax had only included the taxable share of earnings from my 1099-Q on my return. The taxable share of earnings on his 1099-Q don't appear to be on my return, even though he is a dependent and I entered his 1099-Q on my return.
Is the expectation that I would enter the remaining earnings on his return in this scenario? He does have other earned income, but previously filed his return.
Thanks
