I don't believe that Turbo Tax is calculating the adjusted qualified higher education expenses correctly when calculating the taxable distributions from a Qualified Tuition Program. I entered the data provided on the 1098-T form from the University. This included $17,173.77 in Box 1 (total amount we paid toward tuition) and the $9,000 in Box 5 for the scholarship our daughter received. We also filled out a student worksheet that included other qualifying expenses (such as apartment rent). The total of these expenses $11,603, so the total expenses we paid out of pocket = $28,777, which is the exact amount we withdrew from our 529 plan to cover these expenses. For the Qualified Higher Education Expense amount, TurboTax is subtracting the $9,000 scholarship amount, but this does not seem correct. This would be appropriate in previous years if the university reported the total "billed" amount in box 2. The total billed amount would be $26,173.77 (what we paid for tuition + the scholarship), but Box 1 reflects just the amount we paid for tuition beyond the $9,000 scholarship.
Please confirm if I need to "override" the adjusted expenses that Turbo Tax calculated on line 2c of the Computation of Taxable Distibution on the 1099-Q form.
Thank you
