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Education
You need to know what you want to do, you can enter your income, then the 1099-Q, then the 1098-T.
Answer the interview questions in the education section. Enter the Room and Board you paid.
If you click "Maximize my tax break" the program will do just that.
You can't do both, allocate education expenses to a distribution AND a credit, but you might have a choice.
If the student received any scholarships, that also needs to be factored in.
Whomever the 1099-Q was issued to reports that income if that income is taxable.
If scholarships are taxable income, the student reports that on their return.
Your program will tell you if the student needs to claim taxable income.
If it is scholarship income, that amount (only, not the entire 1098-T) is entered in the education section.
Distributions can be entered as "Other Income" on the student's return if the 1099-Q was issued to them.
Click here for IRS Pub 970 with many examples
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