Where in TurboTax can I enter education expenses for my dependent college child when we took 529 plan distributions but do not qualify for any higher education credits?

[deanne_b]

Entering the 1099 Q and 1098 -T and it tells me I am not eligible for any higher ed credits but I should still enter expenses because of the 529 plan distributions but there is no place that it will let me enter then - even when I try to edit under that child in the Education summary. It only takes me to the Books and Supplies - no place to enter Room and Board numbers.

[SharonD007]

Did you 529 distribution exceed the education expenses for your dependent?

The 529 distribution (reported on Form 1099-Q) only needs to be reported on the tax return of the person whose SSN is on the form if the withdrawal is more than the tuition paid in Box 1 of the 1098-T plus other adjusted qualified educational expenses. In that case, the earnings on the excess distribution would be taxable income.

First, determine if the Form 1099-Q needs to be reported on the tax return by comparing the withdrawal with the tuition paid on the 1098-T added to other qualified educational expenses. To find out what are qualified educational expenses, review the IRS Tax benefits for education: Information center. Refer to the TurboTax articles Guide to IRS Form 1099-Q: Payments from Qualified Education Programs and What is IRS Form 1099-Q? for further details.

Secondly, enter the 1099-Q if the withdrawal exceeds the educational expenses by following the directions in the TurboTax Help article Where do I enter a 1099-Q?

When the student's school expenses are paid with these funds, you can't claim a tuition deduction or either of the educational tax credits for the same expense.

The matter of not being able to add room and board expenses for a 529 plan distribution s is a known issue in TurboTax and we are working to resolve it as soon as possible. As soon as we have a resolution for you, it'll be shared on Community.

[Hal_Al]

You can't enter those room and board expenses yet. This is a known glitch in TurboTax (TT). They are working on it (no announced fix date).   The 2025 education and 529 sections appear totally redesigned, from last year.

[LMartin706]

Same problem here... withdrew 529 funds to cover "qualified expenses" that are not included in the 1098-T data, so I need a way to add those costs so i am not taxed unnecessarily on my 529 withdrawals!  

How will we know when this is fixed?

[deanne_b]

Just found this thread of similar questions - sounds like a fix may be happening in a 2/13 update? We'll see - if not, I may have to switch tax providers which is so frustrating!  And to clarify, the expenses did not exceed distributions but the expenses were Room and Board, not Tuition which is found on the 1098T.

https://ttlc.intuit.com/community/college-education/discussion/room-and-board-expenses-not-able-to-b...

[TurboMEH7294]

Got it, the TT walkthrough is crappy because it guides you to enter the distributions from 1099-Q, without subsequently allowing you to put in other non-tuition expenses (such as room & board) that are permitted for 529 plans.  

The correct answer is that YOU DON'T NEED TO INPUT 1099-Q DISTRIBUTIONS, at all, if you determine that your allowable expenses exceed the distributions from 1099-Q.  Don't wait for TT to fix a bug.  Ignore the 1099-Q question, keep your receipts, and be done with it.

[Hal_Al]

The 1099-Q 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. 

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). 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.

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." 

[AnnetteB6]

The experience described here is expected to be resolved in a TurboTax update to be released by February 27th.  

[talltodd]

There's been another update on 2/27/26. 

[LMartin706]

Yep.  I used the online version, vs the desktop version, and I was able to enter room & board and other expenses earlier this week.  So it is now fixed, atleast for the online version.