I love your response of not adding the 1099Q's for my 3 dependent children (which Turbo Tax will not let me add 1099Q's if I select the recipient and beneficiary are dependents. I've been receiving the message Great news! You don't need to report this form {I do they are my dependents on my return}, so I've been having to update their school expenses using the forms option). I never liked how the taxman figured out our Coverdell basis, and am fine deciding myself.
Unfortunately, I see 2 of my children have access distributions after receiving the American Opportunity credit of $2,500. When you are also receiving education credits, you can't figure out you have excess distributions without entering the 1099Q's. Are you telling me I don't have to pay the tax on my access distributions? When I read pub 970, it sounded like I would have to because there is no double dipping on expenses. If you don't enter the 1099Q, you will not see the excess distributions when taking education credits (someone really needs to fix this).
