My "dependent" daughter received a 1099Q in her name for the funds sent to the college for tuition. We also have a 1098T and don't qualify for any additional deductions due to income limits. Is she required to put the 1099Q on her tax form (if she does-it reduces her refund)-I've read both ways-that it is required and that it isn't. Also-if she does enter it-it recommends entering the 1098T so that she won't be "taxed." BUT-when she enters that (which she entered before the 1099Q) it makes it so she OWES money on both federal and state?? She did NOT receive more scholarships/grants (box 5) than what the payments received for qualified tuition and related expenses (BOX 1) was and the additional amount on the 1099Q does not make her exceed this amount either.
