1099-Q & 1099-E

Forum|Forum|4 years ago
March 24, 2022
2 replies
5 views

I have a 1099-Q in my name and a 1099-E in my independent son's name and respective SS #. I get hit with the income on the Q and am not able to deduct the expense for the student loan since it is in my son's name. Is there a way for me to be able to deduct the loan amount for me?

MayaD

Alumni - Intuit

No. Even if you are claiming your son as a dependent, you can't not deduct the interest loan on your return if the loan is in your child's name.

If your son has qualified Educational expenses that is equal or more than the distribution on form 1099-Q, you don't need to report the form on your return.

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Hal_Al

Level 15

It appears that you are trying to claim a loan payment as a qualified expense for a 529 distribution (as opposed to claiming the student loan interest deduction). That is allowed, under the Covid Relief law. There is a $10,000 lifetime limit, per student.

You do not need a 1098-E to make that entry in TurboTax (TT). Making a payment on the beneficiary's loan (or the beneficiary's sibling's loan) counts. The $10K limit applies to each sibling.

Follow the interview carefully. Click continue at the 1099-Q summary page. You will eventually reach a screen to enter the loan info.

Better yet, just don't enter the 1099-Q.

You can just not report the 1099-Q, at all, if your beneficiary has sufficient educational expenses, including student loan payments to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records.

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."