Q. Does TT allow for a student to be registered as both HS and University and subsequently allow for modification of the total tuition paid beyond what’s recorded on the 1098-T?
A. Yes. For a 529 distribution, college expenses will be entered separately from High School (HS) tuition.
Q. How do I enter tuition from private high school and university in same year?
A. After entering the 1099-Q for the 529 distribution, press Done at the 1099-Q summary screen. A couple of screens later, you will be asked what level of school the student attended. Check both HS and college. You will then be given a screen to enter the "Elementary and secondary school" (HS) expenses. The college expenses will be entered later at the Educational expenses and Scholarships (1098-T) section. Be sure to enter the 1099-Q before entering the 1098-T (otherwise, you won't get the college room & board expense entry box).
You can just not report the 529 Plan distribution (1099-Q), at all, if your student-beneficiary has sufficient educational expenses, including HS (there is a limit of $10,000 per year that can be withdrawn from a 529 account to pay for the K-12 tuition) and room & board (even if he lives at home) to cover the distribution. 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.
References:
- On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."
- IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.
- "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."
Here's a post on the five main points on the 1098-T:
https://ttlc.intuit.com/community/college-education/discussion/i-need-help-with-1098t-section-colleg...
See below for more on 529 plan distributions.
