topic QTP Distirbution filing Delay in Get your taxes done using TurboTax

QTP Distirbution filing Delay

Vickroy — Fri, 31 Jan 2020 21:29:12 GMT

I get the following error:

"Check This Entry

Other Income Statement: Qualified tuition program distribution – Taxpayer – You can’t file just yet due to a recent law passed by congress. This may mean a better tax outcome for taxpayers like you who have taxable QTP distributions. We can keep working on your tax return and we’ll let you know when we can help you finish up your taxes…"

Can anyone tell when and If this law has been finalized and when Quickbooks will update the software so I can file?

Re: QTP Distirbution filing Delay

MarilynG1 — Fri, 31 Jan 2020 21:53:15 GMT

If your entire 1099-Q distribution was used for Eligible Education Expenses, you are not required to enter it into your tax return.

For most qualified education program beneficiaries, the amounts reported on the 1099-Q aren’t reported on a tax return. However, if annual distributions exceed your adjusted qualified education expenses, you may need to report some of the earnings reported in box 2 as income on your tax return and pay an additional 10 percent tax on it as well

Click the link for more detailed article on 1099-Q.

Re: QTP Distirbution filing Delay

ahc19081 — Mon, 03 Feb 2020 19:31:10 GMT

This does not seem to answer the original question. In my case, there is a small discrepancy between my child's university's records and mine that is not worth the time to resolve, which leads to me having about $100 of ordinary income attributed to a withdrawal from our 529 plan. I simply want to pay the income tax on that amount (I do not owe the 10% penalty) and move on. However, TurboTax will not allow that right now. When will the program be updated to allow filing to proceed?

Re: QTP Distirbution filing Delay

SusanY1 — Mon, 03 Feb 2020 19:41:40 GMT

We do not have a date for the update at this time. Generally, our software updates are in final form by mid-February, but our developers have not released a final date to us for resolution of this issue.

If you need to file prior to the software update, you could remove the distribution for now and file the return without the distribution listed. Once the software update is finalized, you could amend the return to pay the additional tax due on the small discrepancy. Be sure to file an amendment before April 15, 2020, to avoid paying penalties and interest on any extra tax due.

Re: QTP Distirbution filing Delay

ahc19081 — Mon, 03 Feb 2020 19:54:13 GMT

Thank you very much for the reply and the alternative ways to proceed -- much appreciated!

Re: QTP Distirbution filing Delay

trwmodela — Tue, 04 Feb 2020 14:39:00 GMT

I am also stopped filing my taxes due to this issue.