Q. What about the 1098-T?
A. The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. The same is essentially true of the 1099-Q. But, entering the 1098-T facilitates calculating any tax due on the distribution or in claiming a tuition credit.
Q. Does it hurt anything if I report the 1099-Q's that are in his name? I have done this in prior years.
A. Depends on the details. If none of it is taxable, reporting it on the wrong TurboTax account has the same effect as not reporting it at all.
When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."
If some of it is taxable, you may have paid too much, as your son may be in a lower tax bracket (although taxable QTP distributions are subject to the "kiddie tax"). On you son's return, making some of his scholarships taxable, instead of the 1099-Q, is usually a better alternative.
Since the IRS gets a copy of the 1099-Q, there's a very slight risk of hearing from the IRS.
