@AnnK1
I had similar issue as you (high AGI so most deductions/credits phased out including education, dependent etc) Here is what I ended up doing after hearing so many opinions
- In my case 1099Q was funding for college and amount is completely offset with 1098-T. So both offsets and no tax no matter whos return it goes on.
- Decided my child is a dependent (contributed 50% of their support including education) Then enter 1098T & 1099Q into my taxes. Turbotax required 1098T to be entered first so a 1099Q that isn't your tax ID can be entered as beneficiary (since tax ID on 1099Q is the dependent/beneficiary). The need to enter 1098T first in Turbotax confused me for awhile as I couldn't enter the 1099Q with my child's tax ID into my tax return until I did 1098T first.
- Some people want to claim child is not dependent (try to get stimulus $, education credits etc) by citing the 529 $ technically belong to the child (for example, say a grand parent funded it). Anyway, I (the parent) funded the 529 so I see it as my funding education portion of their support.
