topic Re: 529 plan distributions in Get your taxes done using TurboTax

529 plan distributions

bsolnik — Mon, 09 Mar 2026 11:03:27 GMT

Turbo Tax does not ask me how much i spent on college expenses, it only asks how much the 1098-t shows, which form only shows tuition i paid, it does not show room and board. Since i used 529 plan distributions for both tuition and room and board, turbo tax fails to realize that my 529 distributions are equal to my education expenses, and instead views my 529 distributions as more than my education expenses. As a result turbo tax treats a large portion of my 529 distributions as taxable income! This is WRONG and is costing me thousands of dollars! Turbotax was unable to fix this for me! This is a major, major problems with the software!

Re: 529 plan distributions

KrisD15 — Tue, 12 Apr 2022 02:26:46 GMT

Enter the 1099-Q first

Scroll down in the Education section and select "Expenses and Scholarships"

Select Edit next to the student's name

Select Other Education Expenses (for all schools) and Edit

Select YES to "Did you Pay for Books or Materials to attend school?"

Room and Board is on the list

Re: 529 plan distributions

bsolnik — Tue, 12 Apr 2022 03:27:28 GMT

thanks!