IL-1040 Changes Letter changing other subtractions for College Illinois Distributions

[sharanr]

My IL tax return was accepted but I got a letter today saying We changed your Other subtractions on Line 7.  You may only subtract distributions from the Bright Start, College Illinois and Bright directions college savings plans if you included them in your federal adjusted gross income.  

Turbo Tax had taken me through a wizard saying I can adjust the amount to maximize the refund (I think up to 5000).  It seems like there is a problem with this wizard? My refund has been reduced due to this mistake and I also could not maximize the federal refund as this wizard calculated the best refund based on this $4000 amount.    

Illinois is saying I can provide documentation if I disagree - if the calculation is correct in Turbo Tax, what can be provided? 

Thank you for your help

[AmyC]

If you made the contributions with money that was taxed, it was included in your federal income. If you took the distribution and claimed it all went to qualified expenses, then you would not qualify for the extra deduction on IL.

See Schedule M Instructions