Hi thanks for posting your answers and I do have a big problem here hoping i can get your assistance: I have a college son who just started college in 2019 Fall. He is my dependent and he files tax as well because he has 1099-misc. if $3000. I also know we won’t qualified for AOTC due to our income.
So here is the data:
1. 1098-T $7,000 (box 1 only) - I will report this in my return, correct?
2. 1099-Q $8,000 (box 1 only issued to his SS#) - my son will report this in his tax return, correct? If so, do I need to report Educational Expenses (see below) here or on mine?
3. 1099-Q $26K( box a), $1000 (box b), $25K (box3) issued to me ( parent).
a. I will report this in my return, correct?
b. Educational Expenses: this is tricky sorry...I withdrew the entire 529 by mistake in 2019 thinking 529 is always non-taxable regardless when I use it...mistake.
I paid a total of $15K in 2019 and $12K in 1/2/2020(the billing statement for Spring Semester came out 1/2/2020 so I paid it on 1/2/2020). Can I report the whole total $27K to offset the 529 withdrawal of $34K ($26K + $8k)?
Sorry for the long email but I am very confused and really don’t want to end up with paying a lot of tax on 529.:(
thanks so much!!!
