Education

Provide the following info for more specific help:

• Are you the student or parent.
  • Parent.  But my daughter (the Student) and I are filing tax return separately.
• Is the  student  the parent's dependent.
  • Yes
• Box 1 of the 1098-T
  • $10,508.00
• box 5 of the 1098-T
  • $9,786.00
• Any other scholarships not shown in box 5
  • No
• Does box 5 include any of the 529/ESA plan payments (it should not)
  • No
• Is any of the Scholarship restricted; i.e. it must be used for tuition
  • No
• Box 1 of the 1099-Q
  • There are two 1099-Q. One for me (Owner) and one for my daughter (beneficiary).  Mine (the owner) has the amount of $3,902.92.  Hers (beneficiary) is $9,786.00.
• Box 2 of the 1099-Q
  • Mine is $1,280.97.  Hers is $3,180.96
• Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)?
  • There are two 1099-Q.  One for her and one for me.
• Room & board paid. If student lives off campus, what is school's R&B on campus charge. If he lives at home, the school’s R&B “allowance for cost of attendance” for student living with parents.
  • Campus R&B amount is $5,304.00
• Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
  • Yes, $3,902.92.
• How much taxable income does the student have, from what sources
  • $750 from 1099-DIV and 1099-INT.  The 1099-Q is where she is having problem with. If she put the 1099-Q info into Turbox Tax, it adds an extra $9,786.00+$3,016 to her income.  This is where we are a bit uncertain about.  The total 529 distributed amount to her is $9,786.00.  Why would her income be increased by $12,802.00?  Is it because of her receiving $9,786.00 worth of scholarship? Another word, this amount is not from 1099-Q, is actually from Box 5 of 1098-T?
• Are you trying to claim the tuition credit (are you eligible)?
  • Yes, but TurboTax says that I am not eligible. We are actually more concern about my daughter's tax return, not mine.  She has to pay $700+ worth of tax (because of the 1099-Q?).
• Is the student an undergrad or grad student?
  • Attending college for Undergrad degree
• Is the student a degree candidate attending school half time or more?
  • Yes.