I cannot continue my Federal Taxes (QTP)

Forum|Forum|6 years ago
January 22, 2020
34 replies
0 views

So I am a Grad Student with a 529 College Savings Account, and I already entered in my 1099Q form under my income. After I finished up with my W-2s and my credits, I am approached by a page stating: "Other Income Statement: Qualified tuition program distributions - Taxpayer - You can't file just yet due to a recent law passed by Congress". And it's telling me to review my distributions which I had already entered, and I checked that they are correct. What Law?! Why can't I submit my taxes now, when I already have all of my documents ready?

Is anyone else experiencing this, because I would love an explanation. Also what did Congress even do?

TurboTax Free Edition Online

Show previous replies

dle5

I am getting the same error, however only on (1) of the (3) tax returns I am working on for my kids. ALl three are currently in college. I have entered the 1099Q's exactly the same way, however when looking at the Form 1099-Q Summary for each return, the one with the QTP issue has "0's" for line 18, "Education expenses not used as basis for credits" and 19, "Non-taxable QTP distributions. Whereas, for the others, these amounts match box 1 and box 2 on the 1099-Q, respectively. Why is that? I'm trying to get these all done and I am not sure what to do. Two of the tree kids were in college last year so I am entering info just as I did last tax year and have the 2018 comparable amounts in the "deductions" section so I know I am entering it in the correct location. All distributions were used for educational expenses. Please advise.

Curlygt3

Congress recently passed a new law (yes, they actually agreed on something!!) called the SECURE act that amends many of the rules related to 529 and cloverdale education accounts. It also changed things that impact 401k's to try to make it easier to save for college and retirement.

They have to update the programs for the new rules as I believe certain aspects of the changes were effective retroactively. I have no idea why it is holding up the 529 calculation but it is possible the form is just not ready yet. One of my forms was only finalized Monday.

It doesn't get you filed, but it at least explains why you can't. Check again on Monday.

piper3454

Will not allow me to update the TurboTax program when I start. error message 42016.

justinstults

use a different tax software. It works on tax slayer and h&r block

twbettge

Employee

The replies thus far have no official TT reponse. There are many suggestions on source of problem, as well as workarounds, but no solid official information.

Thus, TT (if you are reading):

1. Is this a TT issue or an IRS issue? Successful use of other (more than one) programs imply it is a TT issue.

2. If IRS issue, please point to, or provide, official IRS documentation with contains evidence they are working on the problem. I cannot find anything online.

3. If TT issue, please provide status and expected date of fix.

It looks to me that IRS Publication 970, updated on Jan 17, 2020, resolved the issue.

Haviographer

Also running into this issue. I assume that it must be corrected before April 15, 2020, yes?

Taxation is theft

I cashed in my Texas prepaid tuition account after it was paid in full. It is not being used to pay for my daughters education as we are using the Texas Hazelwood act to pay her tuition. What rate will the money be taxed? The money I put into the program wasn't tax defered. Will I get a email from turbo tax when I can file?

splitfinger09

Did you find a solution? Any word from TT when this will be resolved?

Rhonds

I got the same message saying I can’t file yet because of a recent law change by Congress involving QTP. I owe money so I’m hoping this change will reduce what I owe. I need to know when TurboTax will be updated. How will we be notified?