Two problems with response:
1) You can't enter 1098-T room and board without entering 1099-Q first in TurboTax. Does that matter, or do you just ignore what the total educational expenses were for the year knowing you have records should any questions occur? I had always just assumed that the IRS used the 1099-Q and 1098-T to bounce off of each other to prevent people from abusing 529 Distributions (although that doesn't make a lot of sense because you still have to add in room and board and other expenses manually.
2) I believe you have to input the 1098-T if you want to apply for any of the educational credits. It seems like though if you covered the tuition and other expenses with your 529 Plan distribution than the credit would cause a problem since I don't believe you can double dip....so I guess you just have to assume you get the credit for the next tax year and reduce how much you pay using your 529 Plan by the tax credit amount ?
Addl Question 3) Can educational tax credit be used for graduate as well as undergrad college expenses? Perhaps the best thing I can do for above is just clean up the subject question for the first two years and use the education credit for the remaining undergrad and graduate expenses.
