My child received a 2016 1099Q. Also a 1098T for her tuition costs. We claim her as a dependent. Who reports the 1099Q and the 1098T? She made <$6,000

Forum|Forum|7 years ago
June 3, 2019
3 replies
24 views

The distribution was made payable to our daughter and she paid the tuition.

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Best answer by ChristinaS

Firstly, you. Since you are claiming her, you enter both forms to determine if you are eligible for any education tax credit. In some cases, part of the 1099-Q earnings are made taxable so you can receive an education credit instead. You can't receive a credit and exclude 529 earnings on the same expenses.

"Double dipping" would only be a concern if the qualified expenses (after scholarship) are under c $5000. If your daughter's education expenses (including room and board) are high enough, you can exclude the earnings as shown on the 1099-Q and perhaps qualify for a tax credit on top of that.

You would only need to go through the motions of entering these forms on her return if some of her 1099-Q is to be taxed.

ChristinaSAnswer

Level 10

You would only need to go through the motions of entering these forms on her return if some of her 1099-Q is to be taxed.

jbmorley915Author

Level 2

Thank you for your helpful, succinct response. Her expenses were <$5000 (local community college) so we will check to be sure we are not "double dipping". Thank you...