It is. And if the 1099-Q was used entirely for educational expenses then it is not taxable and not required to be reported on your tax return. The only part of it that would be entered would be the distributions that were not used for educational expenses. So the system thinks that it is all taxable. Delete the 1099-Q and you'll be all set.
Thank you for the reply Robert. My other question is, should I not report it to the state return too? I live in Illinois.
The 1099-Q is only an informational document. The numbers on it are not required to be entered onto your (or your student's) tax return. The TurboTax interview is complicated and it's easy to make mistakes and that's what has happened. Just delete the 1099-Q.
You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records (you don’t need it). You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships.
References:
Great answer... I called for support only to be told I had to file by mail. Turns out the 1099-Q wasn't part of what would have been printed, so I deleted it and got past this TT bug
What do you mean its not needed? I get no errors for Federal taxes with this form, just Oregon error .. which makes no sense. Can you delete this form from state return or how do you fix this error??
We can't see your return to know the issue so here are a couple of options:
If neither of these work, please tell us why OR is stopping the form and why it needs to be reported.