How do I get the 529 distribution to record correctly

MM1958 — Thu, 18 Feb 2021 13:47:21 GMT

I paid for our son's college expenses with a 529 distribution. TurboTax is taxing me on the amount. Last year I had the same problem and had to find a form and correct it. I am using TurboTax 2020 Deluxe desktop / windows version. What do I have to do to fix this?

Re: How do I get the 529 distribution to record correctly

AmyC — Mon, 22 Feb 2021 20:11:09 GMT

Two options to fix this:

1. If you are positive the entire 529 amount was spent on qualified education, you do not have to report it at all. Just delete the form.

2. If you want to convince the program it is not taxable, you may need to change some of your answers in the education section relating to where and how the money was spent. TurboTax will not give you the room and board entry screen/box until you enter the 1099-Q and complete the 529 distribution interview. Room & board (and other 529 qualified expenses) entry box will be on the same screen as books.

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How do I get the 529 distribution to record correctly

Re: How do I get the 529 distribution to record correctly