Does one need a 1098-T against a 1099-Q for paying off a daughters student loan? TT appears to require it. Thanks

[MarilynG1 · Accepted solution]

If your 1099-Q distribution was used to pay a student loan (up to $10,000 limit) and other qualified education expenses, you don't need to enter it in your return.

If you have a 1098-T with a larger amount in Box 1 (Tuition) than Box 5 (Grants/Scholarships) you should enter it in the Education section, as you may qualify for an Education Credit.  If the amount in Box 5 is larger, then the excess above tuition and other expenses is moved to taxable income.

Here's more detailed info on Form 1099-Q  and Form 1098-T.

@dkrawchu1 

[Hal_Al]

Q. Does one need a 1098-T against a 1099-Q for paying off a daughters student loan?

A. No.

After entering the 1099-Q  and following the interview, you will reach a screen "Student information summary" (or maybe "Non-dependent Student information summary", depending on how you answered the beneficiary question). Click on the pencil (edit) symbol.  That will give you additional screens, including one to enter the loan info.

There is an alternate entry point in the 1098-T interview, fo making a loan payment with 529 money.  That may be why it appears that TT requires a 1098-T.  No. You can enter it in the 1099-Q section, instead (and it's more logical to do so).