My son has scholarships which covers about half of his educational expenses. I took withdrawals from my 529 plan for the total amount (including scholarship). I know I will have to pay tax on the excess amount, but I don't have to pay the 10% penalty because it is related to the scholarship. I have no idea how to calculate the tax amount or how to report this in turbotax. I filled out the form below with all the details. Thanks in advance for any help.
Provide the following info for more specific help:
* Are you the student or parent. PARENT
* Is the student the parent's dependent. YES
* Box 1 of the 1098-T $29,105
* box 5 of the 1098-T $29,275
* Any other scholarships not shown in box 5? NO
* Does box 5 include any of the 529/ESA plan payments (it should not) NO
* Is any of the Scholarship restricted; i.e. it must be used for tuition NO
* Box 1 of the 1099-Q $66,294.00
* Box 2 of the 1099-Q $40,684.59
* Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)? PARENT
* Room & board paid. $14,000
* Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers $300
* How much taxable income does the student have, from what sources ~$2,500
* Are you trying to claim the tuition credit (are you eligible)? YES
* Is the student an undergrad or grad student? UNDERGRAD
* Is the student a degree candidate attending school half time or more? FULL-TIME
