Qualified College Expenses not flowing through correctly in TT 2023

[Paperdoc]

Qualified college expenses for my son are not properly flowing through in Turbotax 2023. Even though his total qualified expenses are greater than the withdrawals from 529 plan, a portion of the withdrawals are still showing up as taxable income.  Do I have to manually override in the "Forms" to fix this issue?  Please help!

[MayaD]

Distributions aren't taxable when used to pay for qualified higher education expenses.

If you used distributions to pay for qualified college expenses, you don't need to report form 1099-Q on your tax return but should keep the form with your tax records. 

For more information, check: irs.gov

529 Qualified Expenses

[Paperdoc]

I used the Easy Step interview process like always to enter the college expenses.  Somehow, this information did not flow through correctly in TT into Item 2C in form 1099-Q, under Qualified Tuition Program (which Georgia has).  That's what puzzled me.  I am having to manually override that value.

[AmyC]

If you are entering the college expenses for the education credits, you do want to enter the 1098-T and claim any allowed amounts at the federal and state level.

You should not enter the 1099-Q. IRS Publication 970, Tax Benefits for Education states:

If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions.

Page 45  repeats: Don't report tax-free distributions (including qualifying rollovers) on your tax return.