My son is not a dependent. We paid for his 2025 graduate school via a 529 qualified withdrawal equal to the tuition charges from his school via direct payment to the school from the 529 plan.
My son received the 2025 1099-Q for the withdrawal total of $13,388 and a 1098-T for the schools payments received of $16,440 (minus a scholarship of $3,052). These amounts match so there should not be any income attributable to my son for the 529 withdrawal.
On his tax return, schedule 1 (line 1z) is showing $5,218 of additional income from the 1099-Q withdrawal. This doesn't make sense to me as he didn't receive the money directly, and 100% of it was used for qualified tuition expenses.
Can someone help me to figure out how to correct in Turbotax? We are using the desktop Mac version.
