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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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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