ALL expenses were billed through the university. I paid the bills (quarterly) from my bank account, and then went to my 529 plan and had the funds distributed to reimburse my bank account.
I only sought reimbursement for legitamate expenses (tuition, mandatory fees, on-campus room & board, and meal plan (required for one year for stupents living on campus). I still paid a lot out-of-pocket for incidentals (food, transportation, etc.) that I did NOT try to claim.
Can I remove the 1099-Q info from my return? I can support that these are legitamate expenses, but I don't see a way to input into TT.
I tried to input 1098-T info, but TT says my AGI is too large.
Thanks
Q. Can I remove the 1099-Q info from my return?
A. Yes.
You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) 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.
References:
Just not entering the 1099-Q is the best option, as the interview gets complicated. But, for others reading this, here's how.
Q. I can support that these are legitimate expenses, but I don't see a way to input into TT.
A. You must enter the 1099-Q before entering the 1098-T. You do have to enter the 1098-T, later in the educational expenses section. That will get you the screens to enter other expenses. Answer yes to the books question to get to the Room & board section. Transportation is not a qualified expense. You will encounter a screen "amount used to claim the education credit". TT may have prepopulated that. In your case (you're not eligible for the credit), change it to 0.
Alternate method:
Instead of entering the educational expenses in the education expenses section, enter it in the 1099-Q section of TT. The workaround is: when asked who is the student, check "someone else not listed here" (Lying to TurboTax to get it to do what you want does not constitute lying to the IRS). On the next screen, enter the real student's name. This will eventually give you one simple screen to enter all expenses. Press Done at the 1099-Q summary screen, to get there.