AmyC
Expert Alumni

Education

First do the math. The 1099-Q distribution amount minus room and board expenses. Then subtract out the tuition. Is there anything left? You don't mention  the 1098-T and box 5 scholarships and any restrictions on them. You may have more moving parts than you realize. 

 

See Qualified Education Expenses - IRS to reduce your 1099-Q. If the 1099-Q is not taxable, do not enter it.

 

IRS Publication 970, Tax Benefits for Education states:

If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions.

 

Page 45  repeats: Don't report tax-free distributions (including qualifying rollovers) on your tax return.

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