Many variables. Let's start with the 1099-Q. If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. It just tucks into the tax file at home. Tuition paid first 3 months of next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions at IRS Publication 970, Tax Benefits for Education.
If the entire 1099-Q was not used for eligible expenses, then someone will need to enter it along with the total of eligible expenses and pay tax on the excess withdrawal. See who enters it here. The rules sound simple, the person who receives the funds and whose Social Security number is on the form is the one to report the 1099-Q on their tax return, if necessary.
Education credit - goes on the return where the student is claimed. Since both are filing on their own, they will file for any available credit. Here is where it gets a bit trickier.
- Please see another post of mine here for more details of the 529 exceeding college tuition and getting education credit.
- If the 1099-Q is not used, please see another post of mine here.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
