@kirlinsc said: "Yes, room and board is included on the 1098T in box 1"
You have to remove that and re-enter it in the right place (other expenses/education). The same for books.
Q. Also, how do I confirm the 10% penalty fee was not assessed. This should not be penalized since she received scholarships.
A. Review form 5329. If any of the 529 distribution is taxable, form 5329 will show either the penalty or the penalty exception (scholarship/credit).
@Carl said: "If there is any excess (scholarship), then it's taxable income. It automatically gets transferred to and included in the total on line 7 of the 1040". That's now Line 1. TT will place the notation SCH to the left.
@Carl said; "If there are any excess 1099-Q funds they are taxable. The amount is included in the total on line 7". That actually goes on line 8z of Schedule 1 and ends up on line 8 of form 1040.
