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taxable 1099-Q distributions

TMMF
Level 1

I am having trouble getting PTO to tax the non-qualified portion of the distribution.

Grad student emptied 529 account after graduation.  Her qualified expenses are for non-tuition expenses.  She will not receive a 1098-T and does not have any tuition expense.  It doesn't seem to matter what I put into the "qualified expenses for higher learning"  nothing shows up as taxable. Is there another place that info has to be entered?

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2 Comments 2
IntuitJimmy1
Employee
Employee

Do you have any earnings entered for the distribution from the educational savings account? Only the portion of the distribution attributable to earnings (vs basis) is taxable.

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TMMF
Level 1

yes I understand, I have distribution, earnings, and basis all entered, along with the amount of Higher Education.  I have calculated it by hand so I know what the amount needs to be - just can't make the program do it.

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