Yes, I really messed this up and have been really upset since discovering she didn't need to file a 2020 and I should never have instructed to send in estimated taxes of $1k. My heart sinks when I think about it. Thanks for helping me work through this. I would actually love to hear that she's required to file for 2020. 😉
Yes, 1099Q was sent to my daughter. We were careful to send all distributions directly to either her or the university.
Correct on the net distribution of $3,616.
Correct on total expenses and scholarships.
I can claim the student as a dependent but I'm open to NOT claiming her if that helps correct my earlier mistakes. It appears neither of us will receive a tuition tax credit because her scholarships exceed the university expenses.
Sorry, I don't understand what you mean about not reporting the 529 distribution. Should I remove the 1099Q from her return? Should I still include the 1098T she received on her return, and enter 1098T info she did NOT receive on her return? How do I not report taxable scholarship. I don't understand what this means.
I do file married jointly but as stated above I didn't think a tuition credit was eligible because of the excess scholarship. Which return would purse a tuition credit and how? I don't know the example you're referring to to report more scholarship or 529 money as taxable. How is this done and on which return?
Thanks for helping with this mess.
