Hal_Al
Level 15

Education

Don't do that again.  To be technically qualified, distributions must be taken in the same year as the payment of expenses. You may have a problem if audited. 

 

The simplest thing is to just not enter the 1099-Q in TurboTax (TT).  The 099-Q is only an informational document. It does not have to be entered.  

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. Again, you cannot double dip!  When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry.

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."