ChristinaS
Expert Alumni

Education

Firstly, you. Since you are claiming her, you enter both forms to determine if you are eligible for any education tax credit. In some cases, part of the 1099-Q earnings are made taxable so you can receive an education credit instead. You can't receive a credit and exclude 529 earnings on the same expenses.

"Double dipping" would only  be a concern if the qualified expenses (after scholarship) are under c $5000. If your daughter's education expenses (including room and board) are high enough, you can exclude the earnings as shown on the 1099-Q and perhaps qualify for a tax credit on top of that.

You would only need to go through the motions of entering these forms on her return if some of her 1099-Q is to be taxed.

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