I have two boys attending college paid for through the 529 plan (awesome plan). Every year, turbotax has me input how much qualified 529 withdrawal we've had and we end up going from owing taxes to a huge refund. the past two years the state has sent me a letter that this is not allowed and we owe money. I'm just imputing the numbers that turbotax asks for!
from turbotax program:
Qualified Withdrawal
A qualified withdrawal is any amount you take out from a Michigan Education Savings Program, MI 529 Advisor Plan and/or Michigan ABLE Account to pay for qualified higher education expenses. Qualified higher education expenses include tuition, fees, supplies, certain room and board costs, books, and equipment required for college enrollment or attendance.
If any amount of a qualified withdrawal was included in your gross income you should enter that amount on this screen.
I put in the qualified withdrawal amount of $56,000 and it always gets rejected by the State of Michigan
