Q. So does that mean we really don't need to file the 1099-Q?
A. It depends on whether you are eligible for a tuition credit (she is your dependent and your income isn't too high [>$90K, $180K married]). See explanation above. You do not have enough expenses to cover the 1099-Q AND claim the credit. Some adjustments will have to be made. If you are not claiming the credit, then yes
Q. And the 1098-T still goes on our return?
A. Only if you are claiming the tax credit. Otherwise, it is ignored (like the 1099-Q, it's only an informational document)
If you are not claiming the credit , it might depend on why your student is filing a tax return and how much tax liability she has.
