Stuck in loop on tuition tax breaks (NY state, Premier desktop)

[durbo_dax_dave]

But I was able to get past the problem using the trick that @NJres figured out (thanks!). Just to repeat it for anyone who finds this thread in the future:

When asked if your child was an undergraduate student, click "yes", and "continue". Put in $0 for the tuition amount, and some random name for the college, then click "continue". Do this for all your children.

Now you will be on a screen listing all your children and their status, with an "X" in the column for "undergraduate". For each child, click the "edit" button, and that will take you back to the screen asking if they were an undergraduate student. This time, click "no", and continue through to the end.

[djsjb]

Now it's in 2024 and the same issue still exists!!!

[bobobonobo]

So I'm the original poster of this issue, and I haven't used TurboTax since the 2021 tax season, but I subsequently learned something that's most likely the root of the issue here:

New York does not consider payment of private K-12 tuition to be a qualified withdrawal from the NY 529 plan. Even though the Federal government does, NY state does not. As a result, you need to pay state tax on the pro-rated gains portion of any such withdrawal.

There still seems to be a glitch in the software in that it won't let you out of that loop, but it's correct when it says this is not a qualified NY 529 withdrawal.

[tax94]

Thanks bobobonobo for the follow-up and that makes sense.

In my case, I'm a PA resident with some NY state income (hence I need to file a NY state return - IT-203). My withdrawals are from PA 529. These are not taxable in my NY return.

Its 3 years later and I still come back to this blog post every year to remind myself how bypass this annoying bug.