Get your taxes done using TurboTax
1. Two possibilities in your return:
- You have to add the second daughter and then the program will ask about the enrollment status, name of college and if there is a 1098-T. You can add it there.
- If you have both students showing, you can select to edit the one missing the 1098-T. You can either add the school or edit the school to add the missing form.
2. No, the college does not enter your payments, only the total tuition. You have 529 which yields a 1099-Q and 1098-T with box 1 tuition paid and box 5 scholarship.
The 529 went to room and board, then qualified expenses. If all of it was used on qualified education expenses, do not enter the 1099-Q. 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.
For the 1098-T, box 5 scholarships may have been required to use for school or could have been for living expenses. Box 1 tuition is all amounts paid which may include 529 and scholarship money. If you are eligible to claim an education credit, all of this can get very tricky. Please see another post of mine here.
