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LHS
New Member

Does student have to report 1099Q income and file federal tax return?

Student has no other obligation to file federal tax return, i.e., income does not require that  a return be filed.  Student is dependent and parents have reported all of the tuition paid as well as other qualifying expenses, but student receives the 1099Q.
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Accepted Solutions
Hal_Al
Level 15

Does student have to report 1099Q income and file federal tax return?

 NO. If you know that the total qualified expenses (after adjusting for scholarships & the tuition credit) was more than the box 1 amount on the 1099-Q; then just don't enter the 1099-Q at all. When the taxable amount is zero, nothing goes on the actual tax return sent to the IRS.

Even if some of it is taxable, as long as the taxable amount is less than $1050 (a student dependent's filing threshold), he still does not need to file a return.

There is a slight risk of getting an IRS letter  by not filing. But in your case, the risk is the same whether you file or not, because you would be filing with 0 income and no forms to show  the 1099-Q as not taxable.

View solution in original post

1 Reply
Hal_Al
Level 15

Does student have to report 1099Q income and file federal tax return?

 NO. If you know that the total qualified expenses (after adjusting for scholarships & the tuition credit) was more than the box 1 amount on the 1099-Q; then just don't enter the 1099-Q at all. When the taxable amount is zero, nothing goes on the actual tax return sent to the IRS.

Even if some of it is taxable, as long as the taxable amount is less than $1050 (a student dependent's filing threshold), he still does not need to file a return.

There is a slight risk of getting an IRS letter  by not filing. But in your case, the risk is the same whether you file or not, because you would be filing with 0 income and no forms to show  the 1099-Q as not taxable.

View solution in original post

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