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Deductions & credits
I really don't want to sound rude, but have the students make the distributions, that's the way it was intended.
If more convenient, have the funds distributed directly to the school, that way the 1099-Q will be issued to the student as was intended.
You can always re-allocate expenses at the end of the year even if the distribution was sent to the school. (re-allocate to Room and Board and/or supplies) but that way it is clear as to which student used which distribution.
In TurboTax, always enter the 1099-Q first, before the 1099-Q. The TurboTax program might allocate up to 10,000 towards a credit if the 1098-T is entered first, which could cause issues after the 1099-Q is entered.
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‎February 23, 2021
8:59 PM