Turbotax 2025 - 529 distribution (1099Q) and 1098T form

[hhp94001]

Please help with my questions below:

My son (who I claimed as a dependent) has received his 1099Q (25K, under his name from 529 distributions paying his college directly) and 1098T (25K, also under his name).

I have received my own 1099Q for $2K (from 529 distribution paying for his laptop and books).

How should I enter my 1099Q for $2K in TT so that it is tax free?  I am also not qualified for the American Opportunity Credit due to my income threshold.  But I would like to pay no tax for the $2K above since it is for school expenses.

I called TT this morning but did not get a clear answer.  I plan to have my son filing his own tax.  The recommendations from TT is for me to:

1)  Include my 1099Q in my tax return

2)  Include my son's 1098T in my tax return (not his 1099Q, only his 1098T).

If I do this, when my son files his own tax, should he include his 1099Q of 25K? but NOT including his 1098T because I already included his form in my tax?  

Please help with my questions above.  thanks

HHP

[Hal_Al]

Don't enter anything on either tax return.

  The 1099-Q (and 1098-T) is  only an informational document. The numbers on it are not required to be entered onto your (or your student's) tax return. The interview is complicated and it's easy to make mistakes. Avoid it if you can and you probably can. 

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) 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 (you don’t need it).  In addition to that, the 1099-Q section of TurboTax is currently broke and won't be fixed until Feb 27. 

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”.
3. "IRS Publication 970, Tax Benefits for Education states: If the entire 1099-Q went to qualified expenses, room and board, tuition, etc; then, you do not need to enter the form." 

If you were eligible for the tuition credit, the answer would be  a little different. See 

https://ttlc.intuit.com/community/college-education/discussion/where-do-i-enter-college-room-and-boa...

if interested. 

[hhp94001]

Thank you for your feedback below !!

In my Turbotax, I already included my 1099Q and my son 1098T.  

I tried to remove both of these forms under Wages & Income (1099Q) and Deduction (1098T), but it does not work.  It looked like once you entered the info, TT remembered this and it stored the numbers in the "Forms" view.  

Please advise if there is a way to completely remove these so that they do not show up any more under "Forms" view.

I would hate to restart the entire tax form from scratch to undo this.

thanks again!

HHP

[Hal_Al]

Delete form instructions  https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-forms/view-delete-forms-turbotax-onl...

[hhp94001]

Thank you for the instructions link below, but I am not able to follow the direction.

here is the instructions:

• Open or continue your return.

• On Tax Home, select Start, Continue, or Pick up where you left off to enter your return.

• In the left menu, select Tax Tools and then Tools.

• In the pop-up window Tool Center, choose Delete a form.

• Select Delete next to the form, schedule, and worksheet in the list and follow the instructions.

  I do not have Tax Tools and Delete a form function.

  Is there another way to do this for my 2025 Turbotax Deluxe?  thanks!

  HHP

[AmyC]

Yes, you can delete forms.

• If you are using the desktop, switch over to Forms mode. Locate the forms from the left, select delete. See How do I delete a tax form in TurboTax Desktop?
• If you are online, look at the menu on the left side and select tax tools, then tools.  See How do I view and delete forms in TurboTax Online?

@hhp94001