This year is the first year in the past decade Turbo Tax is requiring box 2 and 3 to be input for the 1099Q (I have 4 kids who attended college). My financial institutions have NEVER put an amount in those boxes. They’ve always been blank. They DO NOT keep track of your cost basis. Cost Basis is calculated when you file your tax return. This past year I spent hours trying to figure out the cost basis of a Coverdell with Vanguard. Their final answer was is they don’t keep track of it. The cost basis is calculated when you file your taxes with your 1099Q & 1098T, so there is no input for 2 & 3. They are blank on the 1099Q’s. Turbo tax needs to fix this input because you can’t proceed without inputting & Turbo Tax figures out those amounts after inputting education expenses.
