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the k-1 shows income to the beneficiary....the school is not a beneficiary of the trust so there is no distribution to the school....the school got the income plus principal from the trust for tuition but trusts cannot deduct tuition as an expense.
No. You DO enter the 1098-T and claim the tuition credit for the amount paid. It does not matter that the money came from a trust. You claim the credit based on the 1098-T and/or the schools billing statements. The K-1 is irrelevant, for purposes of the education credit. This assumes your daughter is your dependent.
The K-1 is entered, in TurboTax, to report the earnings income, on your tax return (or your child's tax return, if the K-1 is under her SS#).
You're mixing apples and ketchup here. The K-1 has nothing to do with, and no relation to the 1098-T, and vice-versa. They are two totally separate transactions and are reported completely independent of each other. Even if the K-1 and 1098-T are for the same individual and reported on the same tax return, one has no relationship with and no connection to the other in any way, form or fashion. It's like getting a W-2 from your employer for wages they paid you, and a 1099-INT from your bank for interest they paid you. No connection between the two of any type or in any way.
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