Thank you so much for your responses, I really appreciate the help.
I'm still not getting the results that I believe is correct. I'll round the numbers for simplicity.
Payments made to the university are on an 1099-Q sent to my student, and being handled separately.
The 1099-Q represents a payment to me from the 529 for the value of "prepaid tuition". I expect to pay taxes on the earnings, but not be penalized.
1099-Q distribution of 17,000. Earnings of 2000, Basis of 15000.
My Schedule 1 Line 8z correctly shows the 2000 as additional income.
My Schedule 2 Line 8 incorrectly shows an additional tax of 200.
My 5329 Line 5 correctly shows the 2000 as additional income.
My 5329 Line 6 incorrectly is blank as the amount not subject to the additional tax.
I'm just not seeing a way to indicate that these earnings are taxable, but not subject to penalty.
Unless I manually enter the 2000 onto the Schedule 1 with the same descriptor, and remove the 1099-Q/ 5329 form, BUT that's feels like I won't be submitting the correct forms.
Any thoughts?
