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I am having trouble entering data properly in TurboTax for my education situation. Details: 529 account in my name with my son as beneficiary My son is not my dependent for tax year 2025 (we are separated and MFS; my wife is claiming him) 1098-T to my son lists qualified tuition expense payments and a scholarship 1099-Q to my son reflects amount distributed directly from 529 to school for tuition and room and board 1099-Q to me reflects amount distributed to me for computer equipment, software, and enrollment and housing fees, and amount of scholarship I do not qualify for AOTC or LLC and my son does not have enough income to file a return My understanding is none of the distributions from the 529 should be taxable except the earnings portion attributed to the scholarship offset withdrawal, and that should not be subject to the 10% penalty for non-qualified distributions.   Some questions: Should I just not enter the 1098-T and 1099-Q to my son at all? Is it OK if I just enter the data for the 1099-Q to me, and the expenses/scholarship that correspond to that? When I try to tell TurboTax about my son's 1099-Q, answering that someone else received it and that the student is someone else (i.e. not the taxpayer or a dependent), it says the form will not affect my taxes and it will be removed and doesn't let me enter any numbers. Does that make sense? When I try doing what I describe in #1 above, TurboTax still adds the 10% penalty for the scholarship offset withdrawal. I was able to fix that by entering the appropriate amount in Form 5432-T Part II line 5C. But should I have to do that manually or did I do something incorrect in the interview?

2025 TurboTax online using Mac and Chrome browser. All enters have been reviewed and there is nothing that would cause a AMT tax & penalty.  Here's the explanation from TurboTax:  Your filing status is Single. This affects your tax rates and which deductions you can take. Your total income was $12,037, including: Taxable interest income: $29 Taxable Social Security benefits: $147 Taxable IRA distributions: $7,020 Taxable pension and annuity distributions: $4,841 You took the Standard Deduction of $17,750 and had an enhanced deduction for seniors of $6,000. After these deductions, your taxable income was $0. Your total tax before credits was $16,338 in Alternative Minimum Tax, plus $276 in additional tax on IRAs and tax-favored accounts, and $4,931 in Net Investment Income Tax. You also have an estimated tax penalty of $15. You owe $16,353 because your total tax comes from these extra taxes, even though your taxable income is $0 after deductions. The main reason is the Alternative Minimum Tax and Net Investment Income Tax, which apply based on certain types of income and not just your taxable income.

I just input $30,684 of Historic Preservation Tax Credits (HPC) for my Missouri state return and when turbotax completed the draft state return, the final tax credit amount reflected in "Miscellaneous Tax Credits" was only $28,998. The "Net Tax" amount in the total was $39,168, so it is unclear to me why the full credit amount is not being reflected on hte state reutrn.