BrittanyS
Expert Alumni

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

 

@janice78 

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