Dodgerfan
Level 3
05-01-2020
03:16 PM
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I am preparing a 2019 tax return for a married couple. Both are teachers and are deducting educator expenses of $250. Their son is the beneficiary of a State sponsored 529 plan. The plan is in the spouse's name and their son I. s the beneficiary. A distribution of $377 was taken in 2019. The 1099Q shows earnings of $154 and basis of $223.
The Lacerte program is limiting the Educator expense deduction to $346. The difference is $154 coincidentally. Is this correct or an error in the program?
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