Q. 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?
A. Yes, basically. But, 2 buts. 1. There is no short cut to just putting that number on line 8z. The 1099-Q has to be entered on his return along with the adjusted expenses. 2. The calculations on your return may not have included all the data. It helps to have an idea of the outcome.
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-Qs
- Box 2 of the 1099-Qs
- Who’s name and SS# are on the 1099-Qs, 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?
