Education

Hi Hal - I know you mentioned early on that I need not enter 1099-Q on my tax return, since - (1) it is issued on my dependent son name and (2) Box 1 amount on 1099-Q is fully covered by remaining adjusted qualified education expenses (Tuition + R&B - $4000 AOTC).

From your other posts on this subject, I also see that you mentioned if a tax payer decides to enter the 1099-Q, TurboTax will generate the Form 1099-Q for tax payer records, but TurboTax will enter nothing about the 1099-Q on the actual tax forms filed to IRS.

So, just to have something for my records, I entered the 1099-Q info in TurboTax (Box 1 $9646). In addition to $7802 for tuition, I also entered the R&B expenses of $5873 in TurboTax 1098-T area under "other education expenses" section. Screen shot of TurboTax Education section below:

Now, TurboTax did generate Form 1099-Q. However it is showing a taxable amount of $751, instead of 0. I am confused now. Could you please help clarify? Screen shot extract of TurboTax From 1099-Q below: