QTP Qualified Tuition Program computation of taxable distribution Line 3b

[Cruise2024]

After entering 1099-Q for QTP, a calculation is made for "regular tax" resulting in taxable income from a Qualified Tuition Program.  This taxable income then flows into 1040, Schedule 1.  This should not be taxable income--the tuition expenses per 1098-T meet or exceed the distribution from the QTP.  Does anyone know why this calculates an income?  Or is this a glitch in the coding?

[NCperson]

is there anything in box 5 of the 1099-T form? 

also, recheck that you have entered the 1099-Q EXACTLY as the document shows.  Go to 'forms view' and recheck.  Also recheck each question related to education.  I suspect one of the answers may have caused TT to think the distribution (the 109-Q) was not used for educational purposes. 

[Beatrice3669]

I am no expert but have been really stumped by this, I have the same issue.  I took (from my 529)  less than I paid to the university so nothing should be taxable.   I think the answer for me is on page 2 of the student information worksheet.  It appears TurboTax is opting to have me take the American Opportunity Credit, but that reduces how much you can take as a qualified 529 distribution.  You can't do both.  I don't know if posting this link to another site article will help you.  https://www.savingforcollege.com/articles/ask-an-expert-american-opportunity-tax-credit-765