question on 1099Q

 

 

Level 3
 
 

question about 1099Q and 1098T

Help, I am a bit confused.

 

Both of my children are age 24 or older, so they are no longer dependents.

They both attended college or post-graduate last year. The institutions issued 1098T forms to each of them.

I took distributions from their 529 plans to help cover expenses, but (and this might have been a mistake), I took the distributions, so the 1099Q forms were issued in my TIN. 

 

For my younger son, I took a 15k distribution, which is almost exactly the amount of the education tuition expenses for last year ($15,020). But for the life of me I can't figure out how to offset the distribution with the expense. I had my son apparently linked as a dependent, and once I de-linked that, TurboTax determined that most of the earnings on the distribution are taxable (excepting about 2.5k that was used to pay off a student loan). I didn't have this issue with my other son.

 

What should I do? by default I will delete the 1099Q altogether.