In what part of Turbo Tax do I claim the credit first? And in what part do I claim the 529 plan earnings exclusion?

[ColeenD3 · Accepted solution]

First enter you 1098-T. then your 1099-Q.

Here's how to get to the 1098-T screen if you haven't visited the Education section yet:

1. Open (continue) your return, if you don't already have it open.
2. Search for 1098t and select the Jump to link at the top of your search results.
3. On the Do you want to enter your higher education expenses? screen, answer Yes.
4. Answer Yes to Did you get a 1098-T for the year? and Continue.
5. On the next screen, you can choose how you'd like to add your 1098-T. You can upload a digital copy from your computer or type it in yourself. Select which option you'd like and Continue.

From the Education Expenses Summary screen you can:

• Select Add A Student if you need to enter a 1098-T for someone else (and then resume steps 4 and 5 above); or
• Select Edit to revisit the 1098-T for a previously-entered school or Add New School to enter a new 1098-T.

Some important tips about entering this form:

• Parents: If the student listed on the 1098-T is your dependent, enter the 1098-T on your return – even if your dependent paid the tuition.
• Students: If you're not being claimed as a dependent, you can enter the 1098-T on your return regardless of who paid the tuition unless it was your employer. In that case, just keep the 1098-T with your tax records.
• Enter your 1098-T exactly as is even if the amounts are wrong (this is common). You'll get a chance to correct this info and enter additional expenses later in the Education interview.
• Leave blank boxes blank. Don't enter 0 for any blank boxes on the form, as this generates errors.

Form 1099-Q reports distributions and benefits from Coverdell education savings accounts and 529 plans. It's reported on the tax return of the person whose Social Security number is on the form.

Here's how to enter your 1099-Q in TurboTax:

1. Open or continue your return.
2. Select Federal and then Deductions & Credits.
3. Scroll down to the Education section under All tax breaks.
4. Select, Show more and select Start or Revisit next to ESA and 529 qualified tuition programs (Form 1099-Q).
5. Follow the screens to enter your info.

[kcwojo]

ColeenD3,

Thank you for taking the time to provide such a detailed response. I truly appreciate all you did. I should be all set now. Will post again if I have further questions.

Ken