Incorrectly entered 1099-Q on 2018 tax return ($5000), even though there was ONLY qualified education expenses. How can I correct that to get a tax refund.

[SusanY1]

Since you only used the money for qualified education expenses, remove the 1099-Q.  You are only required to list the information on your tax return if you have a taxable distribution.

To remove the form:

1. Login to your account at TurboTax.com.
2. Click on the Search Tool (magnifying glass) in the upper right of TurboTax.
3. Enter the search term 1099Q.
4. Click on the Jump to link that appears.
5. On the Form 1099-Q Summary screen, click Delete beside the form.  
6. Click Done at the bottom of the screen.

[gkmk]

Thanks for your reply. I have done this for the 2019 (Current) Tax Return. However, my issue as stated is for the Tax Year 2018 which is already filed, processed back in March 2019. What is the best way to address this, since the dollar amount is $5000, in the 1099-Q that I had entered last year.

Unfortunately, Turbo Tax does not prompt me to ask if that  the amount paid to me, as the Recipient, in the 1099-Q, was for qualified educational expenses.

Thanks

[KrisD15]

Yes, if you reported a distribution on your 2018 tax year return, you should consider filing an amended return if it results in a refund. 

If the 1099-Q is entered by a dependent, the program will tax it. 

The reason for this is that the person that claims the student also enters the student's education tax documents, such as 1099-Q and 1098-T.

Their TurboTax program determines if there is an Education Credit or taxable income. 

If there is a credit, the person claiming the student gets the credit. 

If there is report-able income, the student reports it.  

If you were not a dependent and you entered the 1099-Q, the program should have asked if it was used for education expenses. 

[gkmk]

Thank you. That pretty much answers my question, that I HAVE TO file an amended return for tax year 2018.

Can you please reconfirm, 

I read/understand that I DO NOT have to enter the 1099-Q in my Tax Return IF all the amount shown in that form is used for educational expenses (QUALIFIED). So, when I file my amended return for 2018, I would actually have to remove the 1099-Q from the amended return.

Thanks

[KrisD15 · Accepted solution]

What you say is true, IF no one else claims the education expenses you are.