I received a 1099-Q, which I entered into TT. TT then asks if the beneficiary is a dependent (I check no and enter the name of the beneficiary, my child), but TT ends the process there. During Smartcheck, TT takes me to a qualified expenses worksheet but I can't figure out how to fill anything in. If I go directly to 1098-T worksheet using Tools, it will not let me proceed because beneficiary is not a dependent.
It looks like TT wants to consider the earnings to be taxable, but they should not be taxable if they are used for qualified expenses, correct? How do I enter the qualified expenses?
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After you enter the 1099-Q, the interview will give you a screen titled "Student". On the list on that page, select "A beneficiary that's not a dependent on this return". You will then be given a screen to enter the expenses directly.
You have to coordinate with the other parent. Even though the expenses may have been totally paid by the 529 plan, she is allowed to claim the tuition credit. You must reduce the amount of qualifying expenses you use for the 529 plan earnings exclusion by the amount she uses (usually $4000) to claim the credit.
After you enter the 1099-Q, the interview will give you a screen titled "Student". On the list on that page, select "A beneficiary that's not a dependent on this return". You will then be given a screen to enter the expenses directly.
You have to coordinate with the other parent. Even though the expenses may have been totally paid by the 529 plan, she is allowed to claim the tuition credit. You must reduce the amount of qualifying expenses you use for the 529 plan earnings exclusion by the amount she uses (usually $4000) to claim the credit.
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