KrisD15
Expert Alumni

Get your taxes done using TurboTax

Form 1099-Q reports distributions.

Form 1098-T reports tuition and fees paid to the school (BOX 1) as well as scholarships (Box 5)

 

If there is an education credit (More expenses than scholarships/distributions) the taxpayer that claims the student claims the credit.

If there is more scholarship that expenses, the student claims the excess scholarships as income.

 

If a distribution is not used for qualifying expenses, the taxpayer listed on the 1099-Q claims the taxable income. 

 

The education credit is only based on Tuition, fees, books and supplies.

Distribution may be offset with all of the above as well as room and board. 

 

You can enter ALL the forms into your program (since you claim the student) and let TurboTax do the math,

OR

Allocate expenses and only enter what you need to,

for example if the distributions paid room and board (Only) then don't bother entering the 1099-Q.

If the distribution paid room and board and part of the tuition, lower the amount in Box 1 of the 1098-T to reflect the decrease in tuition that you allocated to the distribution. 

 

Pub 970 has some great explanations and examples

 

If you need more help, please provide additional information 

 

Amount of each distribution

Amount in Box 1 and Box 5 on the 1098-T

Amount of room and board expense

**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