Do not enter under income. Instead, in TurboTax (TT), enter at:
Federal Taxes Tab (Personal for H&B version)
Deductions & Credits
“I’ll choose what I want to work on” button
-Scroll down to:
--Education
--ESA and 529 Qualified Tuition Programs (1099-Q)
For 529 plans, there is an “owner” (usually the parent), and a “beneficiary” (usually the student dependent). The "recipient" of the 1099-Q can be either the owner or the beneficiary depending on where the money was sent. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient".
The 1099-Q gets reported on the recipient's return. The recipient's name & SSN will be on the 1099-Q.
Since it was not used for college, all the amount in box 2 of the 1099-Q will be taxable and subject to an additional 10% penalty.
