Hal_Al
Level 15

Education

The 1099-Q is just an informational document. You are not required to enter the numbers  on your tax return.  There is no place on the tax form to report a non taxable 529 plan distribution. A tax preparer isn't going to be able to help you do something that can't be done. 

 

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records  (look for the 1099-Q worksheet). You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit, if you are otherwise eligible.

 

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution." 

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