[{"data":1,"prerenderedAt":7},["ShallowReactive",2],{"faq-standard-10198":3},{"rec_id":4,"title":5,"text":6},"10198","How do I exclude the 10% penalty on 529 distributions when I had tax-free educational assistance (scholarships, etc.)?","\u003Cb>First, enter your \u003Ci>1099-Q\u003C/i> information\u003C/b>:\n\u003Col>\n\u003Cli>On the \u003Ci>Income > Tuition Program Distributions (1099-Q)\u003C/i> screen, answer the questions and, if needed, enter your 529 distribution as shown on your \u003Ci>1099-Q\u003C/i>.\u003C/li>\n\u003Cli>When you're finished with all the \u003Ci>1099-Q\u003C/i> screens, click \u003Ci>Continue\u003C/i>.\u003C/li>\n\u003Cli>On the next screen, check the box for the type of education expenses you had and enter any other information requested that's applicable.\u003C/li>\n\u003C/ol>\n\u003Cb>Second, enter your education expenses and educational assistance (scholarships)\u003C/b>:\n\u003Col>\n\u003Cli>Navigate to Menu Path: \u003Ci>Deductions/Credits > Common Deductions/Credits > College Tuition (1098-T)\u003C/i>.\u003C/li>\n\u003Cli>You'll be prompted to enter your education expenses and educational assistance amounts here (or you may be prompted to just click \u003Ci>Save and Continue\u003C/i> if you're a dependent on someone else's return). \u003C/li>\n\u003C/ol>\nPlease note, you can only exclude the 10% penalty if your distribution is less than or equal to your scholarship, allowance, or payment. If your distribution is more than your scholarship, allowance, or payment, you may still have a 10% penalty on some of your distribution. Enter your full distribution, education expenses, and assistance amounts, and we'll calculate any penalty you owe in this case.",1777391493924]