Q: Are you saying that I should ignore the $2K completely? Because is it not a refund rather it is an over-payment?
A. No. It's gonna be taxable scholarship or it's going to reduce the amount of the 529 earnings that are tax free. You can let TT figure that out or you can crunch the numbers to see which is the best way to enter it, like we did last year (https://ttlc.intuit.com/community/college-education/discussion/1099-q-1098-t-and-related-tax-reporti... )
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
