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Voun
New Member

Can we fix TurboTax calculation error?

TurboTax is miscalculating 1099-Q distributions - keep telling me that sum of box 2 and 3 is not equal to box 1. The reason it is not equal is because TurboTax is rounding up. How do I fix it?
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1 Reply
DaveF1006
Employee Tax Expert

Can we fix TurboTax calculation error?

To get past the error screen, you must manually adjust the whole dollar amounts so that Box 2 + Box 3 = Box 1. Suppose, If Box 2 + Box 3 = $101 but Box 1 = $100, just subtract $1 from Box 3 so that all three boxes are the same. The IRS does allow for rounding. 

 

If all the money was spent on education, do not report the 1099 Q. According to IRS Publication 970, According to IRS Publication 970 in Qualified Tuition Program (QTP)" under the subheading "Tax-Free Distributions."

 

"Nontaxable distributions from QTPs (529 plans) are not required to be reported on your income tax return."

 

Publication 970

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