My parents received a 1099-Q for all of the 529 distributions made to me to pay my college tuition. I received a 1098-T from the college for the tuition paid in 2019. How should I handle the tuition expense if my parents actually paid for my tuition?

[ColeenD3]

For a comprehensive answer, please see this LINK. Please note the two additional links at the bottom of the answer. One is for the 1098-T and one for the 1099-Q.

If the student is a dependent, the 1098-T is taken by the parents claiming him.

[Edited 02/02/2020|4:18PM EST]

[NCperson · Accepted solution]

in a nut shell......

the 1098-T goes on YOUR PARENTS tax return if a) they claim you as a dependent AND b) Box 1 is more than Box 5.  Otherwise, the 1098-T goes on YOUR tax return.

the 1099-Q goes on the tax return based on the social security number on the form.  If your parents received the money from the 529 plan before sending it on to the college, it goes on THEIR tax return.  If the college or you received it directly from the 529 administrator, then it goes on YOUR return.  Whose SS# is listed on the form? 

does that help? 

[jrberry10]

Their SSN is on the 1099-Q they received and my SSN is on the 1098-T that I received.  They are not claiming me as a dependent since I supported myself other than my education expenses (tuition, books, living expenses).  Thank you.

[NCperson]

the question is not whether they are claiming you or not, it's whether they CAN claim you.  the IRS position is that if they CAN claim you, they must.  they do not have the option not to.

if they paid your college education (via the 529) and that included the living expenses, how can it be that you supported yourself for over 50% of your needs (which is one of the IRS tests of dependents.)

suggest you may want to get some local help from a tax accountant....wouldn't want you and your parents to make a mess of this situation.