calculation error in adjusted qualified expenses on 1099-Q form

user17702309712 · ‎February 04, 2026

I have spent hours on this double checking my work and I am almost certain there is an issue with the software. I enter the 1098-T information correctly with line 1) payments $64,099 and line 5) scholarships $46,059. On 1099-Q it carries over the calculation to adjusted qualified expenses to be $8040. It should be $18,040. As a result, it is saying I pulled too much from my 529 and is trying to tax me on $10,000.

This is further exasperated by the other known error of not being able to enter room and board through the interview process; I went in and manually used forms to enter room and board.

AmyC

The program likes to take out $10,000 for the Learning Lifetime Credit first. That causes you to have $10,000 of income to get the credit. Let me ask you to double check that you have any taxable income from the 529. If the 1099-Q was used exclusively for qualified expenses, it should not be entered. Tuck the 1099-Q into your tax folder. IRS Publication 970, Tax Benefits for Education states that If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you should not enter the form.

If you do have taxable income and the Q needs to be entered, delete the 2 forms- 1098-T and 1099-Q then try entering the forms in the reverse order.

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user17702309712

Thank you for your response. I will delete the 1099-Q.

Just fyi, Turbo Tax had already calculated and provided a deduction of $2.5K for the American Opportunity Tax Credit. From what I understand you can not also receive the Learning Lifetime Credit, so I am uncertain why the software would deduct $10k for the Learning Lifetime Credit. Thanks again.