My husband just completed tax returns both our kids. Neither had income. Both received a 1099Q with info for Gross Distribution, Earnings and Basis. My husband entered all this in turbo tax and both returns ended up with owing taxes on the earnings even though all distributions were for Qualified Educational Expenses. Other than a couple of Chromebooks and textbooks, all funds were sent directly to their school. Receipts for the Chromebooks and textbooks were submitted and apparently deemed to be qualified educational expenses as my husband was reimburses.
My husband said he followed all the prompts as far as entering info for the 1099Q, but there was no prompt to enter the amount of Qualified Educational Expenses. I am thinking that this info is somehow missing and that is why tax is due. Any help on this would be appreciated.
Thanks!
