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Deductions & credits
It is possible to claim the 1098-T and the 1099-Q if your expenses were enough for both to qualify. However, be careful with claiming both since when calculating taxes, the 1098-T will be used first against qualified expenses, and then the 1099-Q will cover any remaining cost. If the remaining costs are insufficient to cover the withdrawal, a penalty, and tax could be imposed on the 1099-Q distributions.
Your post sounds like you may not have enough qualifying expenses to cover claiming the 1098-T American Opportunity Credit or the Lifetime Learning Credit and the 1099-Q.
For more information, see the link below:
529 withdrawals, and the AOTC and LLC
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March 23, 2023
9:17 AM