Hello,
I'm listed as a recipient on Form 1099-Q. The total amount in box 1: gross distribution was used to pay my daughters tuition (not more not less). The funds came from her 520 plan. When I put in the 1099-Q amount into turbo tax 2024 (box 1, 2, 3), I am automatically taxed for the earnings amount. Last year when I put in the data I was not taxed. Did something change in turbo tax this year? I know that if the distribution amount was used for educational purposes, I should not be paying tax on the earnings. My daughter is a full time 4.0 student. Can I just omit this form on my taxes this year? I don't want to be raise any red flags with the IRS and be audited. Also, not sure if this makes a difference, but both years I am not able to get tuition credit that was sent on Form 1098-T because my income is more that $180K.
Thank you so much to who ever responds to my message.
Best,
Penelope
