I've put all the information from form 1099-Q (payment from qualified education programs) into turbo tax and followed every prompt. I've double checked each question set. Nowhere does it give me an option to state that the funds reported on 1099-Q were all used for qualified educational expenses (in our case, the funds went straight to the college to pay for tuition). The program would have my child file a return and pay thousands in taxes, but according to the IRS "Distributions aren't taxable when used to pay for qualified higher education expenses". Is this an error in the software or am I missing something?
