Can I take a credit or deduction for college expenses paid by my dependent daughter with her 529 plan that she owns?

[KrisD · Accepted solution]

If she is your dependent, you enter the 1099-Q and 1098-T. If there is a credit, you get the credit. If there is taxable income for any scholarships, the student would claim the income. If there is taxable income for any distributions, that income is claimed by the person that was issued the 1099-Q. 

The program will determine the best credit for you. If the program determines that it is best for the student to claim income so that you get a credit, the student would then claim the income, however, if you wish to change that, go back through the "Education Information" interview and on the last screen you can change the allocation. 

Additionally, you can type   letme   into the search box and change the credit you wish to take, or not take a credit at all. 

You cannot use the expenses for a credit AND she use the same expenses to offset a distribution.