Both forms are considered informational, not mandatory.
- The 529 was used for qualified education expenses which can include room and board, even off campus, Since the 1099-Q was not income, it should not be entered. Tuck the 1099-Q into your tax folder. IRS Publication 970, Tax Benefits for Education states that nontaxable distributions should not be entered.
- The 1098-T with the qualified education expenses of $4,000 or more can qualify you for an education credit. If you qualify, enter the 1098-T to claim the credit. Currently:
- For the full credit, your MAGI (modified adjusted gross income) is less than $80,000 ($160,000 if you're filing jointly)
- For a reduced credit, your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you're filing jointly)
- There is no credit given if your MAGI is above $90,000 ($180,000 if you’re filing jointly)
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