I contributed $6000 to my son's 529 savings during 2017. At the end of the year, I took a distribution of $6000 for his room and board. Since this is an eligible expense, where do I take the deduction in TurboTax?
You can enter Room and Board expenses in the Education (Form 1098-T) section of TurboTax.
In the education section, under Here's Your Education Summary, scroll down to Other Education Expenses (for all schools). Click Edit. See screenshot attached at the bottom left.
There is NO PLACE to enter Room & Board. Turbotax is so frustrating!!!
Room and board are not considered deductible expenses, UNLESS the room and board was paid for with a Coverdell ESA or 529 plan distribution. In that case, the cost can be deducted from the taxable portion of the distribution. This is your situation.
First enter the education expenses in the 1098-T section following these steps:
Next enter your 1099-Q:
@Amy278
Note the "trick". You have to answer yes to the did you buy books question to get the box to enter room & board. Yes, frustrating!
Alternatively; 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.
My screen doesn’t have most of the line items shown on your screen.
I’ve finally figured it out! You have to enter the 1099-Q information first, in order to get the room & board line to appear on the expenses.
My Turbotax Deluxe 2020 has the screen you show, but it stops after the book and materials, required and not required steps. It does not have the room and board line.
I have tried everything, but there doesn't seem to be a chance to input expenses for which the CESA distribution has been used, like room and board, internet charges, etc.
will either the required or not required books "yes" work?
I have checked the Not required and I still don't get the chance to input room and board.
TurboTax will not give you the room and board entry screen/box until you enter the 1099-Q and complete the 529 distribution interview. Room & board (and other 529 qualified expenses) entry box will be on the same screen as books.
I have entered my 1099Q already.
I used a CESA (Coverdell savings) distribution to pay the room and board.
I did not get to a page in Turbotax that lists room and board.
what am I doing wrong?
You may have to delete the education info and start over, starting with the 1099-q.
Using desktop (not online) Deluxe, I was able to get the R&B screen even though I added the 1099-Q last.
@Hal al maybe that's the issue. my version is downloaded, online.
Seems it should be the same.
I have deleted and re-entered twice, it still doesn't come up on that screen.
Is there a way to chat with Turbotax and ask them?
I'm at wits end.
Yes, finally! TurboTax will not give you the room and board entry screen/box until you enter the 1099-Q and complete the 529 distribution interview. Room & board (and other 529 qualified expenses) entry box will be on the same screen as books.
TurboTax will not give you the room and board entry screen/box until you enter the 1099-Q and complete the 529 distribution interview. Room & board (and other 529 qualified expenses) entry box will be on the same screen as books.
I did enter 1099Q
I didn't have 529, I had Coverdell Education Savings Account, does that matter?
Where do I find the interview that you mention?
I believe the interview came up after I checked the 529 box. I don’t know about the Coverdell Savings account - I bet you can search for information about Coverdell within TurboTax. Another thing you could try, check the 529 box and see if the correct screens come up. If they don’t come up for Coverdell, but do for a 529, maybe it’s not deductible.
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)
The Coverdell screen will come up in the interview and you can choose the correct options for you.
Please advise on where to input university Room and Board in the TT Home and Business for Mac.
I am running into the same problems noted by other TT users who found that qualified distributions from our 529 are being calculated as taxable income, thus significantly reducing our expected refund (from issues stemming from the order of input of 1099-Q and 1098-T?)
Your help is much appreciated.
Here are the related threads for your reference:
If all of the 529 went to qualified expenses, it is not required to be entered. See page 52 for qualified distributions at IRS Publication 970, Tax Benefits for Education.
Please see my 529 example with IRS information here.
The IRS says in Publication 970 (2020), Tax Benefits for Education | IRS: When figuring an education credit or tuition and fees deduction, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses.
@mamarama The room and board would be part of the 529 expenses, if you actually need to enter the 529 - which I doubt.
To get the screen to enter Room & Board, answer yes when asked if you have book expenses. Usually, you must have also entered the 1099-Q earlier.
I have followed the instructions below and the list item for entering Room and Board do not show up. There are
Tuition and enrollment fees - Entered from 1099-T
Books and materials required to purchased
Books and materials not required to be purchased.
In previous years - there has been an entry for Room and Board but it is not there this year.
Without putting Room and Board - I will have too much money taken out of the 529 and it would be taxed?
Any ideas? I saw another posting that said that if you have enough expenses - you can simply not enter the 1099-Q as it will not be submitted to the IRS if your expenses are greater than your withdrawal (which it is).
Yes, it's true, you can just not enter the 1099-Q.
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 would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip!
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."