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College Tuition - 1099-Q Problem - Forcing Taxable Income

We have a 529 plan for my daughter.  She got a gross distribution of about $6,600 and 100% was used for qualified college education expenses.  So it shouldn't be taxable.  But TurboTax is including it in her income.  Why isn't there a box to check representing this was used for qualified expenses so it's non-taxable?

 

FWIW - This is my third year of 529 distributions and TT seems to push it into taxable income by default w/o giving a simple item like this:

 

"Check this box if all funds were used for qualified tuition expenses"

 

Why can't you do this?  Am I missing something.

 

As an aside I just go directly to Forms.  Please don't tell me to go through the whole walk through process to get this done.  She's got a really simple tax situation and it seems like a waste of time to have to trudge through the interview process.  Sigh.

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1 Reply
MarilynG1
Expert Alumni

College Tuition - 1099-Q Problem - Forcing Taxable Income

If the 1099-Q distribution was used entirely for Qualified Education Expenses, you are not required to enter it in her return. 

 

Click this link for more detailed info on the 1099-Q.

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