Thank-you so much for your response! I have deleted the 1099-Q information from the personal income section. However, after reading the full information of your response, I am now confused in other ways.
The 1099-Q form is in our name - this is money we used to pay for the books and the initial deposti. There is a 1098-T in my daughter's name. This is the one that has the full payment to the college (over $15,000) plus a scholarship ($4000). That was all paid with 529 money. My daughter did not work & doesn't have a W2, so I wasn't planning for her to submit taxes.
Are you saying that I should put in the 1098-T information in our taxes, even though it is in her name and even though it was paid with 529 money? This is what I am gathering from your more detailed information. And, that I should not bother with the deduction for the computer because the 1098-T would be a better deduction.
Did I get it right? I'm not sure because it makes no sense that I should get a deduction with expenses that I paid with tax-free money. I don't want to lose the tax free benefit from the 529.
I also understand that taxes and government regulations often make no sense.
Thanks in advance!!
