If all of the 529 went to qualified education expenses plus room and board, you can delete the form 1099-Q since it does not need to be reported. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions at IRS Publication 970, Tax Benefits for Education.
The IRS changed the limitations to claim Education credits. The phaseout for AOTC is a modified AGI of:
- $80,000-$90,000 or
- $160,000- $180,000 MFJ
If you qualify to claim education credit, your goal is $4,000 spent on tuition for maximum credit. The IRS allows juggling numbers.
If your 529 exceeds all qualified expenses, it will need to be entered. Please see another post of mine here for more details of the 529 exceeding college tuition.
Only one of you should enter the 1099-Q. See who enters it here. The rules sound simple, the person who receives the funds and whose Social Security number is on the form is the one to report the 1099-Q on their tax return, if necessary.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
