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January 30, 2020
Question

TT says I withdrew too much from 529 - these funds were used for qualified expenses

  • January 30, 2020
  • 1 reply
  • 0 views

TurboTax is only looking at the amount from the 1098-T to determine how much was spent on qualified expenses.  1098-T only shows tuition and some fees, but not room, board, or books, which are all allowed for a 529.  When I enter the amount from the 1099-Q, it compares that with the 1098-T amount and says the difference is taxable.  How do I tell TurboTax about the valid room, board, and books expenses so it doesn't try to treat the difference as income?

1 reply

Hal_Al
Employee
January 30, 2020

This year, room & board is part of the 1099-Q interview

February 10, 2020

Where do you start the 1099-Q interview? When I go to the education section, it doesn't let me enter the 1098-T or the tuition paid. 

Hal_Al
Employee
February 10, 2020

Enter the 1099-Q first, the interview goes smoother

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

--Education

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

 

Then:

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

--Education

  --Education Expenses