How about if inputting the 1099Q would show you have excess distributions when taking an education credit?
Unfortunately, after inputting all my children's expenses using the Turbo Tax form option, I see 2 of my children have EXCESS DISTRIBUTIONS. You don't see the excess until you receive an education credit. Both of my children are eligible for the American Opportunity credit of $2,500. When you are receiving education credits, you can't figure out you have excess distributions without entering the 1099Q's. If 1099Q's aren't input, the excess distribution will not be taxed. When I read pub 970, it sounded like I would have to account for the excess distribution and pay the tax since there is no double dipping on expenses. If you don't enter the 1099Q, you will not see the excess distributions when taking education credits (someone really needs to fix this - several of the experts are posting you don't need to add 1099Q's based on you used the distribution for education expenses not considering you may have education credits).
Turbo Tax Deluxe desktop 2025 return won't even let me add my 3 dependent children's 1099Q's after selecting the recipient and beneficiary are dependents. I've been receiving the message Great news! You don't need to report this form {I do they are my dependents on my return}, so I've been having to update their school expenses using the forms option.
