So I started a new return and entered nothing but one of my student's 1099-T, 1099-Q and additional expenses (room and board, books). Simplifying the numbers a bit but let's say
Expenses = 30,000
Distributions = 26,000
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Looking in the forms view it shows
In the "For purposes of Regular tax" line 2c as $20000 instead of $30000
And an excess distribution of $6,000 which is then transferred as taxable income to my 1040
All of the distribution should be allowed and not taxed.
In the "For Purposes of 10% Additional Tax" column for line 2c it lists the full $30,000
