Qualify College Expenses

[bergerme]

Turbo Tax is only letting me qualify my books for college expenses but no where does it allow you to qualify room and board (my son was full time) along with other expenses like his laptop he uses while going to college.  So turbo tax is saying I took out too much from his 529 and is taxing it as income on the federal level.  Is this a bug in the software or am i missing something where to input this information ?

[LindaS5247]

Room and board do qualify as higher education expenses for 529 plans, provided the student is enrolled at least half-time.  I have listed the steps to get to these screens to check your entries in TurboTax below.

Qualified expenses are entered under "Deductions & Credits", "Education," "ESA and 529 Distributions."

You can get to Education Expenses screen in TurboTax to verify your entries as follows:

1. Click on "Search" at the top right of your TurboTax screen.
2. Type "Education Expenses" into the search box.
3. Click on the link "Jump to Education Expenses"
4. Your screen will ask, "Did you have education expenses?"
5. Select "Yes" and "Continue"
6. Follow through the TurboTax screens and enter your information regarding your education expenses
7. Make sure all follow-up questions are answered properly.

529-plan distributions (reported on Form 1099-Q) are not taxable if used for qualified education expenses, such as tuition, fees, books, and room/board.  

Form 1099-Q is an information form. You can choose to not report the Form 1099-Q on your tax return, if your son has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. If you have already entered it, make sure you indicate the funds were used for qualified expenses to avoid taxation.

Make sure you have properly entered all of your qualified education expenses in TurboTax and check all of your entries.

You can get to the Form 1099-Q screens in TurboTax to check your entries as follows:

1. Click on "Search" at the top right of your TurboTax screen.
2. Type "529" into the search box.
3. Click on the link "Jump to 529"
4. Your screen will ask if you received a Form 1099-Q for qualified tuition program distributions in 2025.
5. Follow through the TurboTax screens and enter your information regarding your distributions.
6. Make sure all follow-up questions are answered properly.

 Click here for 529 Plans and Taxes: Deductions, Tax-Free Withdrawals & More

Click here for Guide to IRS Form 1099-Q: Payments from Qualified Education Programs

Please return to Community if you have any additional information or questions and we would be happy to help.