DawnC
Expert Alumni

Retirement tax questions

You do not have to report the 1099-Q if you had sufficient educational expenses, including room & board to cover the distribution.  If you have to report the 1099-Q, the order in which you enter the 2 forms matters.  If you entered the 1099-Q first and then the expenses, the program should ask if you wish to apply the expenses towards a credit or the distribution. If you enter the 1098-T first, the program may compute the credit first, and when the 1099-Q is entered later, the program may not give you the option and simply tax the distribution.  You can delete both forms and re-enter them, reporting the 1099-Q first (if you even need to report it).  

 

Please see this discussion that explains the relationship between the 1099-Q, 1098-T, education expenses and your options in reporting this data (student dependent situation).  

And here is another discussion for a taxpayer student (non-dependent).    

 

 

Form 1099-Q information

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