Hi,
I may have messed up as filed my taxes a few days ago.
Student is dependent (age 23 during 2023), in graduate school.
1099-Q was sent to student - distribution of 66,632. All for QEE. No Scholarships.
In TT, on my taxes, I DID enter the 1099-Q although I'm seeing I shouldn't have, I guess. Also entered the 1098-T.
Expenses were as follows:
Tuition and fees: 66,632
Supplies and equipment: 1415
Room and Board: 17,519
Total: 85,566
Turbo Tax gave me /offered me the LLC credit of 2000.
Now we're having a problem with my daughter's tax return. It wants to consider the earnings portion of the 529 Distribution as taxable to her (34,879)
I'm definitely confused how this is supposed to work and how I can fix/correct it.
Do I have enough QEE to get both the LLC and not have anything be taxable to her?
Her 'free tax return' software (not TT) asked very few questions - just asked if we claimed an education credit, and then just made the entire earnings amount taxable to her.
Thank you for any help.
@Hal_Al
