Doing my Sons return. Entered both 1099Q and 1098-T info on his return (his SSN is on all the forms and I will not claim him as a dependent) - and other qualified expenses. Amounts of Education exp is greater than the 1099-Q gross distribution - but still showing taxable??? Here is the info I entered (in rounded numbers).
Gross distribution on 1099Q = 14,500
1098T from university = 13,500
Added $500 books/supplies and $800 for a meal plan
Total Expenses = 14,800 which is greater than the 1099Q
Student info worksheet looks like it is applying the $10,000 tax credit against my total expenses so showing "adjusted qualified higher education expenses"of just $4,800
It then does a calc to determine how much of that is taxable by looking at the "Distributed earnings" from the 1099Q... this is Part VIII of the worksheet - it is calculating a pretty high taxable number since it is basically "disallowing" the $10,000.
Both these amounts (the 1099Q and Education expenses) are showing up on my deductions side. But the taxable amount (based upon the above) is still showing in Misc Income.
Should I just delete the 1099Q?
