Here is my question / situation that I am completely stuck on how I handle this.
My son was a 5th year senior and graduated in May 2024. He got a job in June 2024 and as such is no longer a dependent (he also turned 24 in 2024, so cannot be a dependent anyways). I paid for his college in Jan-May 2024 with our 529 and I as the parent am listed as the "recipient" on the 1099Q. The 1099Q shows I took 11,000 from his 529 plan (funds sent to me and then I paid the school, as well as separate room and board). I am having issues when trying to enter the 1099Q and associated 1098T into my return as well as if I try to enter both into his return.
Here are my rough expenses amounts
1099Q Line1 - $11000 - Total 529 distributions
1098T Line 1 - $7000 - Total Tuition from his college
Additional expenses paid for Spring Semester
Room - $3000
Board - $2500
Hence total qualified expenses are $12500 vs $11000 in 529 withdrawals.
If I try to enter the 1099Q on my (Parent) taxes, it allows me to enter in the $11000 total WD (of which we'll say $5000 is earnings and $6000 is Basis), but I can only enter in $7000 of tuition. I have no ability to enter in the other $5500 of qualified expenses (room and board). Now I have a taxable event as TT thinks I drew out more from my 529 than I have expenses. That is not correct and I don't know how to fix it on my return if I'm entering these both there.....
So I did some searching on this forum and someone noted the same issue but they said enter both the 1099Q and 1098T on the child's taxes. So I tried that and when I enter the 1099Q on my sons return, I enter "no" to "my son" (i.e. I select someone else) is the recipient on the 1099Q?, TT tells me he does not need to enter the 1099Q.
So I am at a complete loss here. What do I do with this 1098T and 1099Q. When he was a dependent, I simply just entered both into my returns (note I do not qualify for any Hope or other ed credits) and I would be able to enter in tuition, room and board and be all done here.
Help!!!
