How do I claim the $10k deduction for K-12 tuition? The "expenses and scholarship" questions and choices are all geared toward college expense.

[xmasbaby0]

EDUCATION EXPENSES

Education expenses for grades K-12 are not deductible on your Federal return, whether for private, public, or home schooling, nor are the expenses for tutoring, after school lessons or after school activities, such as dance lessons, sports, etc.  Some states allow deductions/credits for K-12 education and/or home schooling expenses; if your state has these deductions available, you will be prompted to enter them when you prepare your state return.  (As far as I know, the states that offer any sort of K-12 deductions/credits are Illinois, Indiana, Iowa,Louisiana, Minnesota, and Wisconsin)

[Hal_Al]

Although there is no federal tuition credit or deduction, the 2018 tax law now allows 529 plan distributions for K-12.

[samuel-ruby2]

That's what I'm referring to.  TurboTax seems to want you to enter your 1099-Q information, which makes all your 529 plan distributions taxable.  How then to claim the 10k exemption for withdrawal for K-12 expenses?  No guidance in the program, and the stock community answers are pre-2018 and misleading.  I did figure out that working with actual tax forms, you would not report distributions at all, so long as all distributions were used for qualified expenses.  But in my case I accidentally withdrew too much.  If I were working directly on actual tax forms, the procedure (according to several articles) would be to report only the PORTION of the 1099-Q income that wasn't spent on qualified expenses.  So I'll do that in TurboTax, and the income reporting should then be OK.  I will also be subject to a 10% penalty on the income, but I'm not sure TurboTax has that figured out.  The penalty section has an item for early retirement withdrawals, but not for over-withdrawal from a 529 plan. 

[Hal_Al]

There may have been a recent update in the program.  I just tried it (I have desktop Deluxe) and it works fine. Enter the 1099-Q at:

-Deductions and credits

  -Education

   -ESA and 529 Qualified Tuition Plans (1099-Q)

You'll eventually be asked what level of schooling the student had, including elementary and high school. Be sure to uncheck college (it was prechecked on my screen). Then you will get a screen to enter your expenses. You do not need to go to the separate educations expenses section.

[TaxMex]

I am stuck with the same issue. Did not really understand how to resolve it. Were you able to figure it out?

[MaryM428]

There is no federal tax credit for K-12 tuition.  You can withdraw money from a 529 or Coverdell account ot pay for K-12, With Coverdell or 529 plan you can save for education and not pay tax on the earnings as long as it is used for education expenses.

Some states do offer families tax relief for K–12 private school expenses. Alabama, Illinois, Indiana, Iowa, Louisiana, Minnesota, South Carolina and Wisconsin offer private school choice programs known as individual tax credits and deductions.

[TaxMex]

Hi Mary,

Thanks for your response.

I understand the part about no tax credit for education expenses. I withdrew from 529 for K-12 private school and entered 1099-Q on TurboTax. The questions only asked me if I spend money on qualified tuition (yes I did) but it did not ask me for details of the name/fed id of the private school.

I want to make sure that I don't get dinged for federal taxes on 529 earnings since I used it for a qualified k-12 school. However, I don't know how to verify that on turbotax.

[Hal_Al]

@TaxMex 

After entering the 1099-Q, follow the interview.  When you reach the screen, titled  "Form 1099-Q Summary". press done. The next screen will ask: "What level of school did the student attend in 2020".  If you check either "attended elementary school" or "attended High School", two screens later you will be given a screen to enter your expenses.  You do not enter elementary/high school expenses in the education section of TT (that's for college & vocational schools)

The name and fed ID# of the school is not needed. 

[Hal_Al]

The name and fed ID# of K-12  schools is not needed. 

[TaxMex]

Perfect. Thanks Hal!

[taxi11]

This has worked in previous years, but in my Turbotax 2023, it is not working.

Do you know how I can enter my K-12 private school tuition qualified education expenses for a 529 distribution that was reported on a 1099-Q?

[Hal_Al]

Q. Do you know how I can enter my K-12 private school tuition qualified education expenses for a 529 distribution that was reported on a 1099-Q?

A. You don't need to enter it, if none of it is taxable. Otherwise, after entering the 1099-Q, a screen will ask what level of school did the student attend. You must answer high school or elementary (K-12 isn't a choice) to get the screen to enter expenses. 

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including K-12 to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records.  Only tuition is an eligible expense for K-12. 

References:

1. On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution." 
2. IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.