I'm working out this issue myself self but I have an issue I can't figure out. My son's 1099 Q Gross Distribution is about 1000 more than the 1098T payments... which is fine because we bought him a computer for school with the 529 plan disbursement. But the Earnings on 1099 Q are $4464 and the basis is $8376. Does that mean He getting taxed on 4464 from a 529 plan?
So here is where it matters. He had no wages in 2019. so do I file a return with only the 1099 Q for info? Or do I enter the 1099Q on My return and NOT file one for him? I started a return for him but is shows he has to pay $784 in taxes... on money that is supposed to be tax-free. I'm really missing something here. can anyone advise on what I'm doing wrong?
I guess the real question is should I be entering both the 1098 T and the 1099 Q on my tax return or do I have to file a return for him because his name and his Social are on the 1099Q form.
