My daughter was in Grad school in the first half of 2020 and I am doing her return. The last payment to her school was in Dec 2019 for Q1 of 2020 tuition, so we didn't receive a 1098-T for 2020. However, for her off-campus boarding & lodging and books, I had sent funds from the 529 with her as the beneficiary, so we have 1099-Q for 2020 with her as a recipient. How do I enter it so that amounts in the 1099-Q don't get placed in her taxable income? If I go to Deductions & Credits, under education expenses summary, I can't enter anything under her school because there is no 1098-T, so I thought I could enter it under Other Education Expenses under Room and Board. However it said she can't claim an education tax break because what's entered do not make her eligible for an education deduction or credit.
What do I need to do differently on her return? Thanks.
