joedrobin
New Member

Where should I enter the 1099-Q and the 1098T? On my or my kids returns?

I had my 529 accounts pay my daughters tuition directly.  They receive 1099-Q and 1098T.  I also took money out of 529 for room and board.  When I try to enter 1099-Q and 1098T on their taxesTurbotax ignors the 1098T.  When I enter them on my taxes , no my what amounts I put in, over or under TurboTax does not change my taxable amount.  Where should I enter the 1099-Q and the 1098T?

ChristinaS
Expert Alumni

Education

If all of the 1099-Q was used for qualified education expenses (including room and board), the earnings on the 529 are not taxable. However, the earnings can be taxable if you are eligible to use them towards an education credit. You cannot take a credit and exclude income on the same expenses.

If you are claiming her as a dependent, you input the 1099Qs and 1098-Ts on your return in order to calculate any allowable education tax credit. Depending on the amount of the tuition, you may be able to claim a tax credit and keep the 529 earnings tax-free. This can be complicated when the tuition is under $4000, or there is a large scholarship. If the room and board is pricey, and the tuition steep, its generally not complicated.

The only thing that would end up on your child's tax return is any amount of the 529 distribution that is taxable. If the 529 is fully used for qualified expenses, there's no reason to enter this info on your child's return at all. The data won't "go anywhere" on her actual tax return.

If you need more info, please provide some more detail on the numbers. And also clarify whose SSN is on the 1099-Q.

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