After being a long-time patron, here's why I will no longer be using TurboTax software:
1. the 2025 tax software does not have any place where one can put expenses for room and board to offset 529 distributions (as reported on the 1099Q form).
2. I contacted TurboTax multiple times and was put on hold (with anticipated time of response being 20-25 minutes), but a live person never responded within that time.
3. After multiple calls, I did finally reach a live person (who was quite gracious and accommodating); however, after her investigation concerning the issue, she sent me an email notice stating that I could simply not put my 1099Qs on my tax return (which sounds like an audit waiting to happen).
4. She then sent me a follow up email notice advising that "TurboTax currently does not have a specific section to enter room and board or computer expenses related to education . . . . there is no announced update specifically adding these inputs to TurboTax at this time."
Interestingly, when one does a search in TurboTax about room and board expenses, their response includes the following: "Room and board expenses can be used for tax-free distributions from a Coverdell ESA or 529 plan. To quality, the student must be enrolled at least half-time in a degree or certificate program. Room and board expenses can be included in the qualified education expenses for the nontaxable portion of the plan's distribution."
SO . . . TurboTax tells you that you can include room and board expenses against the 529 distributions, but they do not provide a way to put these into their tax software. All this does is treat any reported 1099Q distributions as income (subject to tax and 10% penalties).
After years of patronage to TT, looks like H&R Block will be the way to go.
