Dear Turbotax,
For the last 3 years I have based on your guidance handled the 529 that I administer in the following manner when doing taxes for my grandson who is the beneficiary. There are no AOTC credits involved.
Qualified 529 withdrawals less allowed room & board less books = 529 money that can be applied to tuition.
Tuition less remaining 529 money = tuition that scholarship money can be applied to. If tuition remains, there are no taxes. If scholarship money remains, it is taxed as excess scholarship (other Income, 1040 line 😎 . The tuition amount paid by the 529 is included as an Other Scholarship entry. 1099-Q not entered based onTurbo Tax guidance.
Now that the product has been changed for 2025, I can no longer tell whether or not this approach holds water, what I should enter or where I should enter it. This is a TRIVIAL return (1 interest entry, 1 dividend entry) with the exception of the 529 QTP which should not be complicated. WHAT SAY YOU TURBOTAX?
