hi Hal_AI,
I have read your detailed answer. Thank you very much!
My situation is very much like the original parent's, but my question is a bit different: I entered both 1099-Q and 1098-T, and I got about $1500 extra tax compared with when I didn't enter 1099-Q and 1098-T !
- Are you the student or parent. -- parent. (student is my dependent, but she files her own return because she has taxable income of 17k)
- Is the student the parent's dependent -- yes
- Box 1 of the 1098-T. -- 61,680.5
- box 5 of the 1098-T. -- empty
- Any other scholarships not shown in box 5. -- no
- Does box 5 include any of the 529/ESA plan payments (it should not). -- no
- Is any of the Scholarship restricted; i.e. it must be used for tuition. -- no
- Box 1 of the 1099-Q -- 68,000
- Box 2 of the 1099-Q -- 46,900
- Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)? -- Parent
- Room & board paid. If student lives off campus, what is school's R&B charge. -- about 12,000
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers. -- no
- How much taxable income does the student have, from what sources. -- 17,000 from internship, reported on her own return
- Are you trying to claim the tuition credit (are you eligible)? -- no. AGI greater than 180k
- Is the student an undergrad or grad student? -- undergrad
I actually have 2 kids in college. The other kid does not have income, so does not file her own tax return. I don't know if that makes any difference than the above kid in terms of 1099-Q and 1098-T. I am not asking for any other education credit: I just want to avoid paying extra tax when I use 529 to cover my kids' tuition and boarding.
Your help is greatly appreciated!
