529 withdrawal penalty for tuitiion expenses

Forum|Forum|6 years ago
January 30, 2020
2 replies
0 views

I'm doing my taxes and entered how much money I took out of 529 plans to exactly cover my college Freshman's tuition, fees and room and board. But turbo tax is not allowing the tuition to show up as a qualified expense because my income is too high. As a result my taxes have increased. This has to be a mistake. Please explain what I need to do to not get penalized for using a 529 plan to pay for tuition.

jayhawkswenson1Author

I figured it out. had to go back and edit my son's "profile" and enter fake tuition amount for 1098T. I haven't received that document from UCLA yet so will enter official numbers once it's received. Now tuition is showing up as a reasonable and non-zero number. Honestly, TurboTax needs to make the tuition editable at where it's shown rather than the back door requirement by the student's name. But happy to have figured this out.

ridingsv

How did you change your tuition amount? It wont allow me to do this

JFRAHER

Here's how to edit the 1098-T in TurboTax:

From Deductions & Credits
Expenses and Scholarships (form 1098-T) hit Update
From the page that says Now Let's Gather The Additional Education Expenses
Hit Continue. You will need to continue through several screens until you get to the screen that says Your Education Expenses Summary click Edit
At Here's Your Education Summary you can Edit, Delete or Add New School