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January 25, 2022
Question

TT - How to enter ESA withdrawals to pay tuition at a NON-QUALIFIED overseas college

  • January 25, 2022
  • 1 reply
  • 0 views

Using the interview in TT Deluxe, how do I enter an Education Savings Account (Coverdell) withdrawal for a dependent to pay a non-qualified expense (tuition at a foreign college)? Where is the penalty shown?

    1 reply

    Hal_Al
    Employee
    January 25, 2022

    In TurboTax (TT), enter at:

    Federal Taxes Tab (Personal for H&B version)

    Deductions & Credits

    “I’ll choose what I want to work on” button

    -Scroll down to:

    --Education

      --ESA and 529 Qualified Tuition Programs (1099-Q)

     

    When you fail to enter any offsetting expenses, TurboTax will treat all the earnings (box 2 of the 1099-Q) as taxable and calculate the 10% penalty on form 5329.