topic Why is Section 529 QSTP Gross Distribution from 1099-Q showing as Miscellaneous Income if it is offset completely by Education expenses? in Education

Why is Section 529 QSTP Gross Distribution from 1099-Q showing as Miscellaneous Income if it is offset completely by Education expenses?

ddranalli — Tue, 04 Jun 2019 23:05:09 GMT

I entered Section 529 QSTP 1099-Q in Miscellaneous Expense. Every penny was used for Qualified Education Expense. Yet, the entire Gross Amount is shown as Miscellaneous Income (Not even just the Earnings piece). Why? Also I have read other responses to this question in the Community that says if Distribution was entirely for Qualified Education Expense, don't enter 1099-Q at all in TurboTax. What do I do???

The 1099-Q is entered under "Deductions & Credits" in the...

KrisD — Tue, 04 Jun 2019 23:05:11 GMT

The 1099-Q is entered under "Deductions & Credits" in the "Education" section.

Delete the 1099-Q from MIscellaneous income and enter in Education.

Click Federal

Click Deductions & Credits

Scroll down to "Education" and click "Show more" to open

Scroll down to ESA and 529 qualified tuition programs (Form 1099-Q) and click Edit

Enter the 1099-Q and answer the interview questions