I'm having the same issue as Court573.
I entered the distribution amount, the tuition paid, and room/board paid in the appropriate boxes. For some reason Turbo Tax doesn't deduct the full amount of expenses in the worksheet and figures out taxes owed on the balance that wasn't used. When I right click on the balance in the worksheet there's no clue as to how that value was calculated, so I can't figure out where its going wrong. Its off by exactly $9,000, which has nothing to do with any of my entries, so its not like it just missed something obvious like one of the expenses. I can right click on it and override it to the correct value, and then the tax owned goes back to 0, which is what I've done for now to fix the problem.
Since my distribution is exactly the same as the tuition plus room/board, I could just go back into the interview and say no to the 529 distribution question and avoid the entire problem. Is there any advantage to having the worksheet in my records along with the override value I had to provide to correct the mistake Turbo Tax appears to be making?
edit: I just went back in to take another look at this topic, and realized there was one step that I hadn't completed. In the college expense interview section, there are a few sections to complete. Some have dollar values displayed next to them, but the last one at the bottom called "Education information" doesn't have any dollar amount next to it. I had completed all the sections with dollar values, so I thought the tax calculations were complete at that point, but apparently they were not. In "Education information" there are several questions that need to be answered to verify the student is meeting all of the requirements for using the 529 distribution. After answering those questions, my tax calculation finished correctly without needing the override value.
