Q. Why is the amount $11,765 used in the QTP distribution calculations below, considering that the total ESA withdrawals were $13,765?
A. I did not note that you changed that number. I'm still not seeing 13765, but I do see 13791. But, that's academic. The math is the same. It's essentially just an example to show you how the calculation is done so that you have an idea of the expected outcome.
Q. It appears that the Kiddie Tax will apply—should this be expected?
A. Yes. The taxable portion of the ESA earnings is unearned income
Q. Could I have entered something incorrectly?
A. Yes. Enter your unadjusted expenses.
- Tuition: $3,213
- Room & Board: $6,291 ( Not $2,291 )
- Computer & Other Expenses: $1,527
Note: I changed something above to: . Also enter $4000 the box "Tax-free assistance" (instead of $15,765).
I also note that you changed the scholarship amount from $11,765 to $12,265??
