My daughter's in college, and generally speaking would have a very simple return - she made just a few thousand dollars from a summer job, paid no meaningful taxes and had non meaningful expenses. Just a whole bunch of zeroes and not applicable. She is claimed by me as a dependent.
But -- she got scholarship money from college (1098-T) and used some of her 529 plan money (1099-Q). The 529 money went directly to enrolling in some additional courses that were not accounted for in the regular tuition balance.
I started entering her Q form (since it's addressed to her) and TT popped up saying that since she's a dependent of somebody else, typically I would take care of the 1098T. Fine, I guess ... except I was in the middle of dealing with the Q form.
Worse, adding the Q form told me that she'd owe money because it was more than her qualified expenses, unless I then filled out the associated 1098T, showing that it was a fine use of the money.
Her return goes through TT fine, doesn't complain about anything, nothing to review. But I guess before I hit the submit button I wanted to make sure -- did I screw myself in any way? I haven't done my taxes yet. Is it better for me to leave off both the Q and T forms when I submit her taxes and then deal with it myself on my end? I tend to end up paying when I file, so if there's any opportunity for me to maximize my return I want to take it. I'm thinking it's just a wash either way, but thought I'd check. Should I put it on both? Since it didn't affect her return in any way would that still be double dipping?
