You should have received a form 1099 Q for funds you received from the NJBEST college savings plan. Report the 1099 Q in Education expenses.
Select Federal Taxes
Select Deductions and Credits
Select Show More at Education
Select Start or Revisit at ESA and 529 qualified tuition programs (Form 1099-Q)
You will also need to enter education expenses that have been incurred by the beneficiary of the account.
If the beneficiary is a person who is not a dependent:
• Indicate that the payment was for "A beneficiary that's not a dependent on this return" - see screenshot below.
• You will be prompted to enter the beneficiary name. Then, you will be directed to a screen where you can enter the beneficiary’s education expenses. Room and Board costs are listed. See screenshot below.
If the beneficiary is a person in your tax return, select that person and enter their 1098 T information in the Education Expense section.
To enter a 1098 T in Turbo Tax:
• Select Federal Taxes
• Select Deductions and Credits
• Select Show More at Education
• Select Start or Revisit at Expenses and Scholarships (Form 1098T)
If the tuition and expenses entered are greater than the distribution from the 1099 Q, the distribution will not be taxable.
