Topic 1098T handling. Situation: Daughter 1098T and 1099-G (529 distribution) are both in daughter's name. We claim daughter as dependent. Wife and I have too high income to claim any credit under American Opportunity act. I put 1098T on our taxes. Nets $0 deductions. I put 1099G 529 dist on daughters return and it reduced her refund because NOTHING in her filing shows education expenses to offset the 529. So, I put the 1098T expenses on her return as well.
Of course she doesn't get a tax credit on tuition because I claim her as dependent. But, otherwise she would pay penalty on 529 distribution.
Is this okay? Or should I pull her 1098T off of our return (again we don't get squat for it anyway), just keep her as the dependent and be on our merry way?
Turbo tax, when filling her return, had a hint that "parent likely put expenses on their return, but should enter her college expenses there also to avoid taxes on 1099G (529 dist.) intended to pay for those expenses" (something like that).
Either way having the 1098T on us parent's return yields no additional benefit due to income level.
I cannot believe how not straightforward this is. I've seen a lot of posts on it, but none quite the same scenarios. Thanks
