Q. Where do we put her 1099-Q & her 1098-T, on her tax return or ours?
A. It is not "her" 1099-Q, since you are the recipient. If it goes anywhere, it goes on your return. But as AmyC said it does not have to be entered at all, if you know none of it is taxable.
The 1098-T is also only an informational document, it does not have to be entered, at all if neither the parent nor the student is claiming a tax attribute.
Since she is not your dependent, you cannot claim a tax credit. She may be able to claim a tax credit, even if the expenses were paid by 529. Doing so may result in you paying a little tax on the 1099-Q. The family usually comes out better claiming the credit.
Provide the following info for more specific help:
- Are you the student or parent.
- Is the student the parent's dependent.
- Box 1 of the 1098-T
- box 5 of the 1098-T
- Any other scholarships not shown in box 5
- Does box 5 include any of the 529/ESA plan payments (it should not)
- Is any of the Scholarship restricted; i.e. it must be used for tuition
- Box 1 of the 1099-Q
- Box 2 of the 1099-Q
- Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)?
- 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.
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
- How much taxable income does the student have, from what sources
- Are you trying to claim the tuition credit (are you eligible)?
- Is the student an undergrad or grad student?
- Is the student a degree candidate attending school half time or more?
- Did more than half the student's support come from her earned income (ignore scholarship $ as support. 529 money is considered support from the owner (you)
