I've been very frustrated with the Turbo Tax NY state program with regard to 529s. It is very user unfriendly and not helpful with clearly asking/explaining what to enter (at least for me). Just feedback on something that could be looked at for future versions of Turbo Tax's New York add on.
My situation is this. I withdrew funds from my NY 529 and rolled over to my Illinois 529. My understanding is that this is a nonqualified distribution. Turbo Tax asks for the amount of the nonqualified distribution but doesn't clarify if it is box 1 (gross distribution) or box 2 (earnings) from the 1099-Q. Common sense would suggest that it I should just enter the earnings so I am not taxed on the basis but if I do this, Turbo Tax says I don't owe any NY state income tax at the end and that doesn't make sense to me. I am a non-resident of NY with no other income from that state and received no past tax benefit for the contributions from New York to recapture. Any help would be greatly appreciated.
