When using Turbo Tax Deluxe how is the Form 1099Q and 1098T information entered in the program, and on which return?
I am a grandparent account owner and the beneficiary grandson will be considered a dependent of my daughter.
The 1099Q was sent to me and the distribution was listed as to other than the beneficiary. The 1098T was sent to my grandson. As a family group, we would like to take advantage of the American Opportunity Credit or LLC, if eligible. I believe the 529 withdrawals do not exceed the qualifying education expenses, if we choose to forgo the AOC or LLC.
How would this activity be entered in the Turbo Tax Deluxe Model?
The following info is supplied for more specific help:
- Box 1 of the 1098-T: $5200
- box 5 of the 1098-T: $2100
- Does box 5 include any of the 529 plan payments (it should not): I'm not sure- see additional info below
- Box 1 of the 1099-Q: $5500
- Box 2 of the 1098-Q: $1800
- Room & board paid. If student lives off campus, what is school's R&B charge. If Student lives at home what is schools meal plan charge: Student goes to a community college (CC) and lives at home. I don't believe the college has a R&B charge.
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers, internet service: $300
- Additional Info: The $5200 in Box 1 of the 1098-T was paid to CC and reimbursed by 529 withdrawals. Subsequently, CC received the scholarship proceeds of $2100 from scholarship sponsor and forwarded them to the student. This amount was promptly sent to the 529 Plan. The gross billing, followed by forwarding schlorship proceeds upon receipt, is the default position of CC. Alternatively, the student could request CC bill on net basis. The default position of CC implies that the scholarship proceeds are unrestricted, even though proceeds are generally applied by CC to tuition and related expenses. Information found on Financial Solutions for Families website implied the particular scholarship proceeds could be treated as unrestriced depending on how the family chooses to use the proceeds.
