OK, I know this question is "resolved", but now I'm having problems trying to enter everything as discussed.
What I am trying to do:
-We are claiming my son/student as a dependent (since we've established it makes no difference either way)
-I am entering the 1099-Q on OUR tax return
-I *deleted* the 1098-T on OUR tax return, because my son was going to claim it instead (since he got the scholarship)
The problem with this is that TurboTax is now charging me a lot more tax - presumably taxing the 529 distribution that we took out (to pay for tuition/fees). There was nowhere to enter the numbers showing that the entire distribution was used to pay for educational expenses. That had been entered under the 1098-T form (which I deleted).
I have found several other posts that state we should NOT enter the 1099-Q info at all into TT since it is not "necessary" to enter:
https://ttlc.intuit.com/community/college-education/discussion/how-to-handle-1099q-for-dependent-chi...
It seems incorrect to not enter the 1099-Q at all, but if this is the easiest way to get around being taxed on it incorrectly, then should I do that?
However, wouldn't my son be REQUIRED to enter the 1098-T on his return to at least note his scholarship? Even though he shouldn't be taxed on it?
How should I handle this?
Thank you!
