Thanks for your reply!
To your comment: It's not clear if you are the recipient of the 1099-Q or the student is. I'm going to assume your name and SS# are on the 1099-Q. I'm going to further assume you not eligible for a tuition credit, because you income is too high.
The student/my daughter was the recipient of the withdrawn funds - which were ONLY the amount of the scholarship. (I withdrew funds, payable to me, in the amount of the tuition and expenses and nothing extra.) Her name and social are on the 1099-Q. She is my dependent and I am not eligible for a tuition credit (all tuition was paid by the 529 anyway which I believe would preclude me from taking the credit?).
So I have answered to 'Who's shown as the Recipient on your 1099-Q' = "someone else not listed here" - then on the next screen it asks: 'Who's the student?" and I've selected the first bullet, which is the name of my daughter. Then it says "you don't need to enter this 1099Q info". and there is the button to add education expenses. I go there....
When I enter the expenses - I'm entering only the scholarship amount (because she did not pay any tuition, I did). Then the Federal tax due increases by about $3400. There's no way she's in a 30% tax bracket. Am I supposed to also enter the tuition paid? IF I do that, then the tuition paid will exceed the amount of the 529 withdrawal in her name. I'm also anticipating that I will have a question on how to enter the earnings portion of this withdrawal. Am I on the right track?
