I paid cash for books, supplies and equipment, plus room and board, but TurboTax states, "I can deduct...IF if paid using QUALFIED EDUCATION SAVINGS"! Why not cash?

[jaketdotson]

does this mean if I'm paying my way through college with cash, I CANNOT deduct out of pocket school expenses?? That seems crazy

[KrisD15]

I think the program is addressing Form 1099-Q.

Did you enter Form 1099-Q? That "Qualified Education Savings Distribution" can be offset by expenses such as room and board, as well as tuition, books and supplies. 

To apply for a credit, enter Form 1098-T and the education expenses such as tuition, books and supplies that you paid with cash. 

[Hal_Al]

Provide the following info for more specific help:

• Are you the student or parent.
• Is the  student  the parent's dependent.
• Box 1 of the 1098-T
• box 5 of the 1098-T
• Any other scholarships not shown in box 5
• Does box 5 include any of the 529/ESA plan payments (it should not)
• Is any of the Scholarship restricted; i.e. it must be used for tuition
• Box 1 of the 1099-Q
• Box 2 of the 1099-Q
• Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)?
• Room & board paid. If student lives off campus, what is school's R&B on campus charge. If he lives at home, the school’s R&B “allowance for cost of attendance” for student living with parents.
• Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
• How much taxable income does the student have, from what sources
• Are you trying to claim the tuition credit (are you eligible)?
• Is the student an undergrad or grad student?
• Is the student a degree candidate attending school half time or more?