ThomasM125
Employee Tax Expert

Deductions & credits

You may be able to report the 1099-Q and 1098-T on your tax return to see if you qualify for an education credit.

 

If the form 1099-Q is in your name you can report it on your tax return, along with the form 1098-T. If the education expenses are more than the scholarship income, you may be entitled to an education credit that can reduce your income tax liability. You can report the 1098-T on your tax return even if it is the name of your daughter, provided you claim her as a dependent on your tax return.

 

If you use the education plan distributions for qualifying education expenses, then there will be no tax liability involved, in other words, you won't owe taxes on your distribution.

 

 

 

 

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