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1099Q not working

I enter my 1099Q but TT never shows the education summary screen, never let's me breakdown the expenses between room and board, computers, books, etc. It just returns to the "pick your topic to work on", and of course I get taxed on the 529 disbursement even though it's all qualified 529 expenses. Stuck...

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1 Reply
Hal_Al
Level 15

1099Q not working

Normally, you have to enter the expenses later in the 1098-T section.

 

But, here's quicker & easier workaround in TurboTax:

Enter the 1099-Q. When asked who the student is answer: someone else not listed here (lying to TurboTax to get it to do what you want does not constitute lying to the IRS).  Enter the student's name when asked.  A few screens later, you'll get one simple screen to enter expenses. Press Done at the 1099-Q summary screen, to get there. Also enter the amount of the scholarship in the box "Tax-free assistance".  This reports the earnings as taxable and claims the scholarship exception. You do not have to deal with the complicated “Educational expenses and Scholarships” (1098-T) section later.

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