Solved: Three kids taking 529 distributions (8k, 8k, 1k) totaling 17k. All should qualify. I am getting limited to 10k. How to enter each individually so not to get capped?

rcalcutta · ‎12-06-2019

George4Tacks · ‎12-06-2019

Yes, K-12 deals in the $10,000 limit. I think the solution is an override and notes to self to handle the IRS letter that will come up later. https://accountants-community.intuit.com/articles/1606086-reporting-an-education-distribution-form-1...

Here's wishing you many Happy Returns

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George4Tacks · ‎12-06-2019

Yes, K-12 deals in the $10,000 limit. I think the solution is an override and notes to self to handle the IRS letter that will come up later. https://accountants-community.intuit.com/articles/1606086-reporting-an-education-distribution-form-1...

Here's wishing you many Happy Returns

George4Tacks · ‎12-06-2019

Screen 14 - Notice under Distributions is a 1. A bit further down is Add and Delete. Click Add and enter the new 1099Q. Do that again until you have 1. 2. and 3. entries for the three distributions.

Here's wishing you many Happy Returns

rcalcutta · ‎12-06-2019

Thanks for the response. I had done that. But it is still giving me a $10k cap because there is no way I can see to tell it they are for three different beneficiaries. This either a shortcoming in Lacerte since this is the first year for this, or I am missing something. Thank you for your help.

George4Tacks · ‎12-06-2019

I just did a dummy return with 3 distributions, all funds spent on Higher Education.
12,000 with earnings of 11,000 on 1,000 Spent 12,000
10,000 with earnings of 7,000 on 3,000 Spent 10,000
8,000 with earnings of 6,000 on 2,000 Spent 8,000

Lacerte showed a Worksheet with 24,000 distributed earnings and zero taxable.

Here's wishing you many Happy Returns

TaxGuyBill · ‎12-06-2019

@George4Tacks The $10,000 cap is from K-12 expenses, not "Higher Education". Does that change things on your dummy return?

rcalcutta · ‎12-06-2019

Hi George, Thanks again for your reply. Each of the 3 kids are in K-12. They should each have a $10k cap, but Lacerte is giving me a family cap of $10k since I do not see a way to code each distribution to a different kid. Thanks, Rob

rbynaker · ‎12-06-2019

@IntuitAlicia any thoughts on this one?

Three kids taking 529 distributions (8k, 8k, 1k) totaling 17k. All should qualify. I am getting limited to 10k. How to enter each individually so not to get capped?

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