I withdrew $70,342 from my 529 Plan for my daughter's qualified educational expenses of the same amount (tuition, books and room and board). Turbotax is reducing my qualified education expenses by $10,000, calling it an adjustment "used for credit or deduction" resulting in a tax liability. Not sure what this deduction is, as I have never deducted 529 contributions from my Federal return. Last year this was not an issue. I read through the IRS documentation and do not see any reference to this $10,000 adjustment. The only credit I am eligible for is the "qualified higher education expense for 529 plan". I believe there is an error in the Turbotax software. Please help!
