Hi all,
A variation question on this theme.
What I did:
1. My student's 2019 1098-T has her *spring 2020* tuition amount on it (because I paid her fees in December 2019).
2. I then submitted her entire 2019 1098-T expenses (ONLY TUITION) for reimbursement from the 529 in 2020.
What this resulted in:
1. The 2020 1098-T is lower than it should be.
2. The 1099-Q (to me) has a much larger amount - and has boxes 2 and 3 filled out.
My student has an off-campus apartment whose rent and expenses for 2020 (room and board) should easily cover the difference between the 1099-Q and 1098-T.
What TT is doing:
1. Even if I show expenses that clearly cover the entire amount on the 1099-Q, I am being charged ~$900 in taxes. How do I go about resolving this?
Bottomline question: I can prove qualified expenses that cover the entire amount, do I have to enter the 1099-Q and beat my head against why I am being taxed?
Thank you all for your responses.
