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Education
That's the conclusion I came to after going to read p970 on the IRS site. That was the answer I was looking for. She gets more back if she takes the credit, but she'll have to "pay" taxes on the 529 distribution. Not providing amounts but yes, there were earnings (almost double basis). That's what TT was calculating the tax on.
Thank you for the response.
‎February 19, 2025
5:08 PM