my daughter is a full time student. We are paying her tuition. I entered the info from the 1098-T(line 1 greater than line 5) into our (parents) tax return. I followed TT prompts and entered the info from the 1099-Q (that has my daughter listed as the recipient). into our return. the end result was a screen that said 'it looks like our daughter has $1xxx of taxable income', from the whole exchange and I'm confused. I was anticipating that the education tax credit we received would be reduced-because some of her tuition was paid from a 529 distribution- it was not. Also confused as to why a "tax Free" 529 plan was going to produce a taxable event.
TT asked me if some of the tuition was paid using any 529 monies and I sad yes.
TT asked whos name was on the 1099-Q and I said---our daughters.
Am I also then , required to enter the 1099-Q onto my daughters return? She isn't getting "credit" for paying the tuition and I just added the 1099-Q info on our return. can the 1099-Q be entered onto both ours and her tax return? THANKS FOR ANY HELP and SORRY if I am not explaining things well or using the correct terms. I'm very new at this.
