Q. Does that mean neither of us would report them at all??
A. Yes, as long as there are enough expenses, including room & board.
Q. Is it an issue if we already reported and filed the $15K 1099-Q on our daughters...would we just Ignore it on ours as well as all expenses?
A. It's not an issue, for two reasons. 1. There are enough expenses for both distributions. 2. Nothing was really reported to the IRS. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms.
Q. I'm just not sure why there isn't a way to "match" the 1098-T expenses on the same return as the 1099-Q withdrawal for funds?
A. There is. The 1098-T is only an informational document. You may enter it on both, if necessary, making the necessary adjustments.
Q. 1099-Q withdrawal for funds that go directly to the school but are in the child's name. Is it supposed to go on the parents return?
A. No. The student is the "recipient" in that case.
Q. The reporting just has me perplexed for a "normal" student.
A. Yes, it's a complicated issue and a common topic in this forum. Theoretically, TurboTax can handle it. But it's tricky. Short cuts can be used and the shortest cut of all is just don't enter it if you know it's not taxable.
