I have a 1099-Q for non education withdrawal there is ony an amount in box 1 but the system is making me add numbers to box 2 & 3

[MarilynG1]

TurboTax requires boxes 2 and 3 of Form 1099-Q for a non-qualified 529 distribution to determine the taxable portion of your withdrawal. Box 2 (earnings) and Box 3 (basis/contributions) are needed to calculate how much of the distribution is taxable income, as only the earnings portion is generally taxable and subject to a 10% penalty.

• Box 2 (Earnings): This amount represents the profit made in the account. When a withdrawal is non-qualified, this amount is considered taxable income.
• Box 3 (Basis/Contributions): This is the amount you originally contributed. This portion is not taxed because you already paid taxes on that money.
• Non-Qualified Penalty: For non-qualified distributions, the earnings portion (Box 2) is taxable and potentially subject to a 10% additional tax on Schedule 2 (Form 1040

Here's more detailed info on Form 1099-Q.

@Svelez 

[j0mike1993]

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. 

[MarilynG1]

If you had a non-education withdrawal reported on a 1099-Q, the earnings will be taxable, so that amount is needed.  If you have that amount, subtract it from the distribution amount for a Cost Basis amount in Box 3.

Box 2 and 3 should add up to the Box 1 amount.  You may not have run into this when your earlier distributions were used for education expenses.  However, since you mention you have a 1098-T, it sounds like you did have qualified education education expenses.  If your 1099-Q distribution was for qualified expenses, you don't need to enter it in your return.  Keep records of what was paid with the 529 funds.

Here's more detailed info on Form 1099-Q.

@j0mike1993 

[j0mike1993]

You have to put in your 1099Q even if you used all the distributions for education expenses because Turbo Tax calculates a running basis with all variables including education credits. Last year I forgot to consider the education credit for one of my sons and the distributions I took ended up being more than allowed because of credit (you can’t double dip). I didn’t take more than expenses, but after the credit, the access ended up being taxable. He didn’t have to pay a penalty, but he had to pay the tax. If you don’t input your 1099Q, you’d have to keep a manual basis, and the calculation is ridiculous. When I first started taking distributions for my son, I was told I didn’t need to input 1099Q. To get his basis I had to go back several years to figure out the basis. There is a worksheet in Pub 970. Please stop telling people they don’t need to input their 1099Q because you do to get your basis & pay tax if you take the credit over distribution. Credits are usually the better option.