PA Coverdell ESA

[jtbusfield]

Turbotax PA return process says we have a Coverdell education savings account but we do not.  Why?  How to disable?

JTB

[DavidS127]

Here are a couple of things to do to solve your issue:

Review your entries in the Education section of Federal, and the PA state return questions to look for a Coverdell box that was inadvertently checked, and uncheck it.

If you can't find a box that has been checked wrong, try to find the offending PA form in your "Forms" mode (icon is in the blue bar at the top right).  Once in Forms mode, all the forms in your tax return will be listed on the left, first the federal and then the PA.

 Look for a "Coverdell" related form among the PA forms (may have a red ! next to if it is showing an error) and delete or correct that form.  If there is no Coverdell specific forms, review the Info/Student/Education worksheets for a box where "Coverdell" was checked, and uncheck it.

Click the "Step by Step" icon now at the top right to get back to the interview questions.

[jtbusfield]

Thank you David.  I cannot find any reference in the questions or forms to Coverdell - only in a comment as I walked through the PA return.  I did find the two "sales" events for the share related to the comment in the step by step process.  These are listed on Sch D of the PA return.  Since I identified them as "non-taxable" they have an "x" in their respective status block.  However there is a third transaction listed that IS valid, so I cannot delete the form.

At the end of the day, the net gain of the two transactions identified as Coverdell is only$82, so not a real substantial financial impact, but I cannot fathom where or why TT pulled this seemingly bogus information.

JTB

[deb2020]

I am having the same issue.  I looked at the Federal forms as well as Pennsylvania (PA) and cannot find any field for Coversell.   The gain on the sale is taxable in PA and is much more than the above situation of $82.  I cannot delete the form either.  Because the questions on the PA input do not provide an appropriate response, what do you suggest.

[KrisD15]

Did you enter a 1099-Q? 

That would be listed under Deductions & Credits

[deb2020]

no.  To double check that I did not enter a 1099-Q, I went to the forms listing and only the 1099-DIV I entered are listed.  Is there some place else I should review?

[PATaxUserConfused]

Has there been a resolution to this?  Seems to be an issue with any stock sale, that TT is connecting it to a Coverdell ESA in the PA State Tax Return

[xuther]

I'm having the same issue this year 😕 

[GeorgeM777]

Given that you are seeing Coverdell ESA entries on your PA return, review your federal return, and specifically your responses in the Deduction & Credits section.   Entries on your federal return that relate to Coverdell ESA will transfer over to your PA return.

In the Deduction & Credits section, scroll down the page to the subheading Education, click on the drop down arrow to reveal several options, and see if the term "Revisit" is next to the category ESA and 529....  If you see the term "Revisit," you may have previously opened that section and perhaps entered some information.

Even if you don't see the term "Revisit," click on Start to open the ESA and 529... category and review the pages in the section.  If you find information that has been entered, you can delete it.  Removing information should delete it from not only your federal return but also your PA return.  

@xuther

[mexicanpotato]

I think the problem is simply that the wording is ambiguous.

The statement I'm getting is "you have at least one gain or loss from the sale or exchange of property or a distribution from a Coverdell". I thought it was a mistake at first, but now I think the intent is either

A) gain or loss from the sale or exchange of property

B) distribution from a Coverdell

In hindsight, it wouldn't really make sense to say "exchange of property from a Coverdell", only a distribution is "from".

[chezez]

I made an account specifically to respond to this. NONE of the fixes stated in this thread work. I have no 1099-Q documents, I made sure the "Coverdell ESA" boxes under "Deductions and Credits" were unchecked (ie: both "were you a beneficiary of a Coverdell ESA" and "did you receive a 1099-Q". Still pops up asking me about a stock sale which it thinks is a Coverdell ESA with no way to fix it. This needs to be rectified.

[pierogisandwich]

I'm in the same boat as previous commenters (now posting for the '23 tax filing season). I've attempted all the fixes listed above and none have resolved my issue. Turbotax is convinced 3 transactions in my Coinbase account, of all places, are relevant to an ESA account  It seems odd considering I've filed for the past several years with the same Coinbase without this quirk. And I have zero interest in paying a whopping $135 so a live tax assistant can tell me I'm screwed. 

I'm done after this. H&R block gets my money next year. Every year presents a new headache and I've stomached it solely because I've bought into this ecosystem in the past.  

[Debbie412]

I am having the same issue.  Did anyone ever find a workaround?  Thanks!

[CatinaT1]

Were you able to resolve your issue here or are you still needing guidance? 

Make sure you have ran all updates. 

If using TurboTax Online: Clear your cache and cookies. See this FAQ, for your particular browser.

If using TurboTax Desktop: Please see this FAQ.

If you still are not able to solve this, please call TurboTax Customer service.  Here is a link:  Turbo Tax Customer Service 

[pierogisandwich]

I'm not sure what you mean by "updates", but if you mean Windows/browser updates, they were up to date when I filed my taxes in January. I could have waited, but I had no interest in hoping someone may or may find a solution. As a workaround, I marked all the affected transactions as "not applicable in PA" as TurboTax wouldn't let me proceed without admitting these transactions were within a nonexistent account. 
I also tried progressing past this issue with a cached refresh, cleared cookies, several different browsers, and on several different machines to no avail, at which time I went ahead with the aforementioned workaround and an elevated blood pressure.