First of all, I am waiting on a new 1099Q. After reviewing the number, it was discovered that refunds from room & board were not applied back to the 529 properly. My account manager is fixing it and issuing a new 1099Q. I think that will resolve some and maybe most of my problem because TurboTax won't think money was taken out of 529 and not used for education expenses, which is one of my main problems.
College will not issue 1098T, and that is part of the next problem. Called Bursar again today and had child log into student account. We can see the 2019 form and no 2020 form. Bursar claims scholarships exceeded tuition and fees. So, the new issue is that money was sent from the 529 to the college in December (shows up in 1099Q), but the college did not receive and process it until January. Advice on this challenge?
Now, your questions and my answers:
- Are you the student or parent. I am a parent
- Is the student the parent's dependent. Student is my dependent
- Box 1 of the 1098-T (or total amount of tuition and fees paid in 2020) No 1098T; I contend that it is $13481 based on money dispersed from 529
- box 5 of the 1098-T (or total amount of scholarships received): No 1098T; $10750
- Is any of the Scholarship restricted; i.e. it must be used for tuition. No
- Box 1 of the 1099-Q: Estimated to be $9171 (See note above, awaiting new 1099Q)
- Box 2 of the 1099-Q: TBD/unknown at this time; dependent on new 1099Q
- Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)? A Parent
- Room & board paid. If student lives off campus, what is school's R&B charge. If student lives at home, what is school's meal plan allowance. On campus housing, $3833 after applying refunds for R&B, but includes expenses for Spring 21 semester that were spent out of 529 in December 2020.
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers: $2030
- How much taxable income does the student have, from what sources. $0
- Are you certain you don't qualify for a tuition credit? MAGI greater than threshold.
