I am having a similar question in my situation.
My daughter needs to file taxes because of some 1099Bs.
Daughter received 1099Q, distribution of $1737. TurboTax has me enter 1099Q as part of an interview for HER return.
Entering the 1099Q inter her return increased what she owed in taxes.
TurboTax says do not enter 1098T for her return because that should go on my return (she is dependent on someone else's return)
Her 1098T info - Qualified tuition $14473, scholarships Box 5 is 6000.
My (Parent) income greatly exceeds any 1098T benefit write-off. (e.g. >$250k)
According to the guidance in this thread, we should ignore the 1099Q for both returns? This would not cause a red flag?
Considering that the 1098T is useless for my (parent) return due to my income, I do not see why TurboTax does not give me an option to enter it on my daughter's return to:
1. acknowledge 1099Q
2. cancel tax liability with qualified education expenses.
It does not seem correct to ignore the 1099Q even though there is no tax liability. The IRS knows of the 1099Q.
Any help would be greatly appreciated.
