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Level 1
posted Feb 5, 2020 10:01:24 PM

How to Enter College Room and Board Costs so that I do not pay Taxes on my 529 Distribution?

How to enter college housing expenses to offset 1099-Q amount (from 529) not covered by 1098-T (tuition)?

 

No education credits, scholarships, etc. Just need to get the housing costs entered so that I do not get taxed on the 529 distribution amount of the 1099-Q which exceeds the tuition amount of the 1098-T.

 

This was straightforward in previous version of TT, but I do not see how to do it in TT2019.

 

Thanks.

 

1 9 2821
9 Replies
Expert Alumni
Feb 6, 2020 7:31:48 PM

When you go back into the Expenses and Scholarships (Form 1098-T) under the Deductions & Credits:

  1. The first screen you come to is Your Education Expenses Summary.
  2. Edit the student on the screen.
  3. On the next screen Edit Other Education Expenses (for all schools).
  4. On the next screen it should say "Did You Pay for Books or Materials to Attend School?". Select Yes.
  5. On the next screen you will see where to enter Room and Board.

 

Level 15
Feb 6, 2020 7:36:01 PM

To get the screen to enter Room & Board, answer yes when asked if you have book expenses.

New Member
Apr 12, 2020 4:25:39 PM

My question was similar to this, but trying to determine if I "need" to enter school information somewhere.  Here's my situation (I am the parent with a college student).  I am claiming my student as a dependent and putting the 1098-T expenses on my tax return.  Long story short, I'm getting the $2,500 AOTC.  However, I also withdrew money from student's Coverdell (and thus got a 1099-Q in their name).  I am putting this on their tax return.  I too want to put in just the room and board.  However, unless I bypass the steps and go straight to the form, it seems to force me to enter school information from the 1098-T (which I don't want to do).  Do I have to list a college (name, address, tax ID) or can I just enter the room and board expenses (to offset the Coverdell distribution).

Expert Alumni
Apr 12, 2020 4:43:37 PM

You can skip the 1098-T.

Enter the 1099-Q 

Start the education section and say No to having a 1098-T

Click "Yes" to "Did You Pay for Books or Materials to attend school?" and enter the room and board. 

Level 2
Jun 10, 2021 5:16:29 PM

The screen to enter room and board does not appear for me. 

Level 15
Jun 10, 2021 6:15:14 PM

Room and board (R&B) are not qualified expenses for a deduction or credit. R&B are qualified expenses for a 529/ESA/QTP plan distribution.   To get the R&B expenses screen, you must first tell TurboTax (TT) that you took a plan distribution (usually that you received a 1099-Q).   Even then, you must answer yes to the book expenses question. R&B is on the same screen as books. 

Level 2
Jun 10, 2021 6:22:04 PM

I am trying to put them as an expense for the 529 distribution.  I have gotten to that book expense question, but it is not showing the R&B part. That is my issue. 

Level 15
Jun 10, 2021 6:27:56 PM

Try deleting both the 1099-Q and the 1098-T.  When you re-enter, enter the 1099-Q first. 

Level 2
Jun 10, 2021 6:36:03 PM

Thanks everyone. I did it in a different order and it did appear. Appreciate the help.