AmyC
Expert Alumni

Get your taxes done using TurboTax

The 1099-Q would not be entered since it was used entirely for qualified expenses. $11k room and board plus $5k tuition. IRS Pub 970 states: Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return.

 

The 1098-T would leave a maximum of  $2,000 taxable scholarship income. $9k scholarship - $7k tuition - minus any books and other qualified expenses for taxable scholarship income. Follow the instructions of Kris above for entering the taxable amount. See page 12, What Expenses Qualify at IRS Publication 970, Tax Benefits for Education.

 

The parent did not need to enter either.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post