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Get your taxes done using TurboTax
The 1099-Q and 1098-T are used to make calculations.
Distributions can be applied to Room and Board OR Tuition/Fees, to be non-taxable.
Scholarships may only be applied to Tuition/Fees, or they are taxable.
More information would be needed, such as whether you are applying for an education credit,
but basically, the payment shown on your 1099-Q may be offset by the payment that will post in 2023.
If the distribution was used for education purposes, leave the 1099-Q out of the program and lower the expenses you claim if you are applying for a credit.
If the distribution went all to Room and Board, you can leave the 1099-Q off and no other adjustments are required since Room and Board cannot be used for a credit.
If the distribution covered all the tuition, and there was no scholarship in Box 5, you can leave the 1098-T off as well.
If the distribution covered PART OF the tuition, enter Form 1098-T and adjust the amount in Box 1 so that it reflects what you paid out of pocket in 2022. Don't include the portion of the distribution for the 2023 payment, you will adjust for that next year (adjust Box 1 DOWN by the amount on the 2022 1099-Q that paid for the 2023 1098-T)
If you WANT to enter your 2022 1099-Q, use the link under Box 1 on the 1098-T entry screen and increase Box 1 to reflect the portion that crossed calendar years.
Forms 1099-Q and 1098-T are used to
Get an Education Credit (based on expenses paid over assistance, such as Distributions, and Scholarships)
Claim taxable income for assistance received that was not used for education expenses.
If neither of these apply to you, you can leave the Forms off, the program does not need these numbers if they are not needed for a calculation.
Be sure that next you you do not use the expenses reported on the 1098-T that are allocated to the 2022 Distribution.
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