We took $19,354 in distributions from my son’s 529. ALL money was used for qualified college expenses. Under the “qualified tuition problem computation of taxable distribution” section of the 1099-Q on line 2b, there is an amount $16,850. Where does this number come from? I don’t understand why I would be taxed on any of the distribution if it was ALL used for qualified expenses.
If you clicked "Maximize My Credit" the program will tax the distribution and take an education credit if the credit is more than the tax.
Please revisit the "Education Information" section located on the "Here's Your Education Summary" page.
Go through and answer the questions. On the last screen it should show the amount of education expenses being used for a credit. You can change this to zero if you do not want the distribution taxed.
You may also type letme into the search box and change the credit.
If you do not choose a credit, (leave all boxes blank), no credit will be claimed.
If you clicked "Maximize My Credit" the program will tax the distribution and take an education credit if the credit is more than the tax.
Please revisit the "Education Information" section located on the "Here's Your Education Summary" page.
Go through and answer the questions. On the last screen it should show the amount of education expenses being used for a credit. You can change this to zero if you do not want the distribution taxed.
You may also type letme into the search box and change the credit.
If you do not choose a credit, (leave all boxes blank), no credit will be claimed.