topic TT says I withdrew too much from 529 - these funds were used for qualified expenses in Education

TT says I withdrew too much from 529 - these funds were used for qualified expenses

dlw91 — Thu, 30 Jan 2020 00:05:23 GMT

TurboTax is only looking at the amount from the 1098-T to determine how much was spent on qualified expenses. 1098-T only shows tuition and some fees, but not room, board, or books, which are all allowed for a 529. When I enter the amount from the 1099-Q, it compares that with the 1098-T amount and says the difference is taxable. How do I tell TurboTax about the valid room, board, and books expenses so it doesn't try to treat the difference as income?

Re: TT says I withdrew too much from 529 - these funds were used for qualified expenses

Hal_Al — Thu, 30 Jan 2020 00:41:16 GMT

This year, room & board is part of the 1099-Q interview

Re: TT says I withdrew too much from 529 - these funds were used for qualified expenses

dixychik21 — Mon, 10 Feb 2020 01:34:11 GMT

Where do you start the 1099-Q interview? When I go to the education section, it doesn't let me enter the 1098-T or the tuition paid.

Re: TT says I withdrew too much from 529 - these funds were used for qualified expenses

Hal_Al — Mon, 10 Feb 2020 01:39:19 GMT

Enter the 1099-Q first, the interview goes smoother

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

--Education

--ESA and 529 Qualified Tuition Programs (1099-Q)

Then:

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

--Education

--Education Expenses