Dear Kris,
I am extremely grateful for your reply. Mea culpa for poorly crafting my original inquiry. Let me start over:
I am a Dad, with a 529 plan.
I am not the dependent of anyone else.
My dependent child is the 529 beneficiary and attending college (one in 2021-2, two in 2022-23).
For 2021 tax year, we received both a 1098-T and 1099-Q, as some 529 funds were paid directly to my child, and other 529 funds were paid directly to the college.
My child reported 1099-Q info on her turbo 1040; I reported 1098-T info on mine, and also took American Opportunity Credit. Turbo accepted all this without further ado.
This tax year, we received one 1099-Q (529 funds paid directly to child) and two 1098-T, one from each college she is attending more than halftime.
Again, child reported 1099-Q on her Turbo return without a problem; but I encountered rejection entering 1098-T info on mine, as follows:
1. Deductions and Credits section: Expenses and Scholarships (Form 1098-T) was there with college name listed, and Edit button, which I pressed.
2. Your Education Expense Summary (listing my dependent child) appeared. All info was correct. I continued.
3. Next page opened with message: "You can't claim and education tax break. Based on what you've entered so far you are not eligible for an education credit. Here is why you may not qualify:
*Somebody else can claim you as a dependent on their return. (This does not apply to me)
*There were no net qualified education expenses" (I don't know how to interpret this, but assumed there might be a glitch due to some faulty input on my part.).
I was kindly informed by another Turbo community member that one does not have to enter either 1099-Q or 1098-T info on a return, yet Turbo acknowledged input from last year, so I assumed I could do the same this year (adding additional college 1098-T), but now I'm unsure what to do and whether, if I proceed, I will be offered the American Opportunity Credit further along in my return prep.
I have PUB 970 open...what a maze. Hopefully, you will be able to guide me with your expertise.
Many thanks.
Neil
