For the life of me, I cannot find a way to enter my daughter's Room & Board

[dmk5]

I have gone through TurboTax Deluxe 2024 section on education every which way I can think of, answering prompts in different ways just to see what would happen, and still I cannot find a place where I can enter her room & board expenses (which were paid for with qualified 529 funds). I can enter her books and materials under 'other education expenses' but that's it. The Tuition section is just the amounts from the 1098-T which does not include Room and Board. Can you help?

[Hal_Al]

Room & Board (R&B) is only a qualified expense for the 529 Plan distributions.  As such, TurboTax (TT) will not let you enter R&B unless you have first entered a 1099-Q.  After entering the 1099-Q, later at the 1098-T section, answer yes when asked if you have book expenses. TT will then have the R&B box on the next screen.

If it's not there, you may have to delete the 1098-T and re-enter. 

[dmk5]

Thank you so much. The challenge I see with this potential solution is that every way I've tried to enter the 1099-Q TurboTax is designating it a 'taxable' distribution even though everything was used to pay for her college. In looking at these TT community forums the best answer was to simply delete the 1099-Q if I know it's for qualified expenses. I seem to be in hopeless circle. I need to enter the room and board, but can't, and don't want to be taxed on the 529, but am. Help!

[annieland]

If you're using a Desktop version, try doing it in forms mode, it's a little more robust and easier to break down expenses than the lackluster interview.  Find the "Student Info Wk" under the Dependent Worksheet.  Scroll down through that and you can enter your expenses where you want to, and ensure it balances out to show no taxable value of the 529 distribution.  Room and Board I put on line 6 in the first column.  In the end nothing ends up getting reported on your submitted return (if they're all qualified expenses), but I like to make sure everything is balanced and entered correctly in my records too.

[Hal_Al]

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 (you don't need it). You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip! 

References:

1. On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution." 
2. IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.

The 1099-Q and the  1098-T are only informational documents. The numbers on them are not required to be entered onto your (or your student's) tax return.

[dmk5]

Thank you Annieland and Hal_A.l. I've had a look at the forms and while it looks like yes, I can enter things where I need to, it also looks easy to make a mistake. The forms are complicated - if I wanted to decipher forms like this I wouldn't need TurboTax, but it seems it must be my only option. This all worked fine in the 2023 version. I'm wondering if there is a glitch this year. This should not be so hard. I tried the other solution offered and it didn't work. It just kept telling me that I don't need to enter the 1099Q because I'm not the recipient. Skips me to enter the education expenses where again, there is no option for room and board. 

[Hal_Al]

"It just kept telling me that I don't need to enter the 1099Q because I'm not the recipient. "

For 529 plans, there is an “owner” (usually the parent), and a “beneficiary” (usually the student dependent). The "recipient" of the distribution can be either the owner or the beneficiary depending on who the money was sent to. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient". The distribution will be reported on IRS form 1099-Q. 
The 1099-Q gets reported on the recipient's return (if it even needs to be reported).  The recipient's name & SS# will be on the 1099-Q.
Even though the 1099-Q is going on the student's return, the 1098-T should go on the parent's return, so you can claim the education credit if you are eligible.  

[dmk5]

Thank you so much for the prompt replies. When I try this approach, the 1099-Q still comes up as 'taxable' on my daughter's tax return. And there remains no option to enter room&board with the 1098T on mine. I seem to be trapped in a circle. I don't think my situation is unusual, quite common actually. But if TurboTax is designed for the 'relatively intelligent but not a CPA' regular dad, it seems I'm still not smart enough to figure it out! 

[Hal_Al]

Even though you entered the 1098-T, on your return, it can also be entered on her return.  On her return, you will eventually reach a screen "amount used to claim the education credit" (or similar wording). If TT has not prepopulated that with $4000, you should enter (or change to) $4000 (assuming $4000 is the amount you used to claim the credit on your return). 

But, if you have done the calculations and know that she still has sufficient expenses (including R&B), after you use $4000 of tuition for the credit, then just don't enter the 1099-Q or the 1098-T. 

The 1099-Q and the  1098-T are only informational documents. The numbers on them are not required to be entered onto your (or your student's) tax return.