The first school total cost is $70690 for the year - I am told I need to report the entire cost, so what we paid and what the $37000 Scholarship paid.
We actually paid them $33680 in 2024 - and that match the 1099-Q that was issued with my daughter as the recipient (it was mailed directly to school from 529 plan).
I have no answer to why it gets reported like that on the 1098-T - I think it has to be because of QTRE rules - they do not report the cost of Rooms - and other items like that. (she lives on campus but we pay her food).
Why no room and board for School 2 ? It was summer school - all virtual - no room and board - just the fee to attend.
My problem is - she has to file her own taxes due to other income etc.
So she has to file the 1098-T and 1099-Q for her and she did without problems.
I am simply trying to get TT to understand that I took out $39098 from the 529 plan. That I used parts of that money to pay Computer + Food + School 2 tuition = $12067 in qualified Expenses.
I know $27031 is not qualified ...
And since $13186 of the distribution was earnings it comes out to $12067 divided by $39098 = 0.3086 and $13186 x 0.3086 =4069. $13186-$4069 = $9117.
So.. That $9117 is my taxable income - and I was able to tell TT not to calculate the 10 percent penalty be changing the 1099-T numbers to understand the Scholarship.
Not sure if that is legal or if it will get caught in auditing etc.
