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Deductions & credits
You are correct.
You don't need to report the 1099Q but you should hang onto it in case I need to verify the education expenses were qualified (along with a copy of the tuition bill). Your daughter doesn't have to file a tax return because $3,000 is below the required amount of $12,400 for a single filer. And you can take advantage of the Lifetime Learning or American Opportunity Education credits.
Here is a TurboTax article about the 1099-Q and another article about education credits.
March 2, 2021
8:59 AM
331 Views