Hello,
I have a similar questions. The software displayed a message, "the student beneficiary must report $xxxx of taxable income from this distribution (1099-Q). Yes I claim the student as a dependent, so I entered all 1099-Qs (one to the student, one to the parent) , and 1098-T into my return. The software does a worksheet for the 1099-Qs, as stated the math gets convoluted, especially with the education credits (AOC). All seems OK with my return.
Now moving to the students. Yes, he worked a job, W-2 with taxes deducted, and now I am ready to deal with the message above. I went to enter in the 1099-Q, that is in his name, but this doesn't seem correct. Since the software calculated the taxable income for this distribution and gave me a detailed message in my return, I believe that I should make sure the calculated value from my return, must match Schedule 1 8z, Other income $xxxx, with the description of "Qual State Tuition Prgm from 1099-Q. Does this seem correct?
