mydtaxes
New Member

How can I get Turbo Tax to ask appropriate questions to determine (correctly) that my taxable QTP distribution is NOT subject to the 10% tax penalty?

I took a 1099Q distribution after my student is graduated and no longer my dependent because I will have no more college expenses to pay but I requsted the distribution because she has numerous scholasrhips which is why I had leftover QTP funds. This meets the IRS exception to make the taxable earnings portion not subject to the 10% extra tax but Turbo Tax didn't ask about that and put my taxable amount onto Form 5329 Part II line 5 and nothing line 6 causing a result on line 7 of the total earnings distribution from line 5 to be made subject to the 10% penalty calculated on line 8 and put it on schedule 2 line 8 as well, adding to my tax on line 23 on form 1040. Is the only way to fix this to print my forms and change this and file by paper?