topic Does Turbo Tax not count computer deductions when reporting expenses for 1099-Q as qualified expenses for a 529? in Education

Does Turbo Tax not count computer deductions when reporting expenses for 1099-Q as qualified expenses for a 529?

davidgruhn — Sat, 01 Feb 2020 19:48:26 GMT

Re: Does Turbo Tax not count computer deductions when reporting expenses for 1099-Q as qualified ...

LinaJ2020 — Sat, 01 Feb 2020 23:50:52 GMT

The program should have counted it as part of the 529 plan expenses. It is a qualified education expense for a 529 plan.

https://www.irs.gov/newsroom/529-plans-questions-and-answers ( Question #4)

Re: Does Turbo Tax not count computer deductions when reporting expenses for 1099-Q as qualified ...

davidgruhn — Sun, 02 Feb 2020 19:21:31 GMT

It did not, it only took books off of the taxable amount.

Re: Does Turbo Tax not count computer deductions when reporting expenses for 1099-Q as qualified ...

NCperson — Sun, 02 Feb 2020 19:39:54 GMT

did you report the computer expenses?

can you share some of the numbers that makes you believe TT did not deduct the computer expenses from the 1099-Q?

the expenses don't come off 'the taxable amount'; they come off the BOX 1 entry. What did you mean by 'the taxable amount'?

Let's say the 1099-Q distribution was $5,000 (Box 1) and $1,000 (box 2) and you had $3000 of qualified expenses and that is all. Then that would leave $2,000 or 40% of Box 1 with no expenses (i.e. too ,much was distributed). that would mean that 40% of the $1000 from Box 2 would be taxable.