All Posts

Who was issued the 1099-Q, you (the owner) or the student (beneficiary)? It's usually better to have the student make the distribution and have Form 1099-Q issued to the student. That way if any of the distribution is taxable, it will be taxable to the student at the student's tax rate. Making direct transfers to the school will result in the 1099-Q being issued to the student.    A distribution of 1,944 would be best applied to Room and Board. Room and Board can offset a distribution, but cannot be used for a credit. Even when a student is at home, a living expense not more than the school charges for room and board can be applied. That would leave zero distribution taxed.   That leaves expenses over scholarships of 1,955.  The credit maxes out with 4,000 expenses.  Most likely it would be advantageous to have the student claim 2,005 in scholarship income giving you 4,000 towards the credit. This also would depend on whether the student has other taxable income.    In TurboTax, enter the 1099-Q first, then enter Form 1098-T, additional expenses for books and supplies as well as room and board expense. Continue through the Education interview until you click "Maximize my tax break" The Room and Board should cancel-out the distribution and the program should suggest the student claim 2,005 scholarship giving you the full credit. If the student's income is below the filing threshold for dependents, they needn't even file and the scholarship income will not be taxed. The scholarship income would also qualify as earned income for the student allowing them to contribute to an IRA if they so desire.    Type    letme    to see the options for the credit and to change the expense allocation if desired.     Pub 970 explains more 

Hello!  First of all, thank you for your help. I would enter them for 2023 return even though the two forms show 2024 on it? How would i specify that they are for tax year 2024? I checked the 2023 turbotax and didn't see the option to specify. Also, when I enter the 2024 1099-R, the 23 version of the turbo tax code says they are for tax year 2022, which is not true.   Thank you,

You cannot rollover your RMD. If all of your distribution was an RMD then you cannot make a rollover. You made a new contribution to the IRA and might have an excess contribution. If you do then you will need to request to remove the excess plus earnings by the due date (including extensions). The earnings will be taxable in the year the contribution was made.   If you took more than your RMD then you can rollover the excess only. Please select "Some of this distribution…" instead  of  "The entire distribution applied…" for the second RMD screen. Enter the RMD amount. If you have an excess amount left to rollover you will see the rollover questions MinhT1 mentioned.   @GI_Joe0602 

If this rental was converted from your personal residence to a rental or vice versa, be sure that you have not entered any personal use days as part of the Property Profile information.  Personal use is only counted if you use the property while it is considered to be a rental property.   If that does not fix the issue with reducing your expenses, be sure that all of your entries in the Property Info or Property Profile section are accurate.  This is usually where information is captured that causes expenses to be prorated.

Reassigning the withholding is not recommended as noted in your other post. You can use the following actions to assign the dividends and/or interest to the appropriate taxpayer, meaning the estate. On the individual return and on the estate return use the correct amount of taxable income based on the date of death (earnings before and after death).   Nominee Returns.  This is how the IRS knows what you are doing. Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners.    File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096) On each new Form 1099, list the deceased as the payer and the other owner, as the recipient. On Form 1096, list the deceased as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner. The forms filed with the IRS should be the red copy (use the form(s) needed) so if you don't have a color printer, go to the IRS website to fill in and print the forms here:  Form 1096 Form 1099-INT Form 1099-DIV Form 1099-B

Assuming the $12920 was paid in 2024, there is enough room and board ($12920) to cover both 1099-Qs.   Both the parents and  the student do not need to enter their 1099-Qs. Even though your 529 money actually went for tuition, at tax time you are allowed to "allocate" it to R&B.   Otherwise, the student will need to report some of his 1099-Q box 2 amount as income. But, he will not pay any tax, as the credit will, wipe it all out.    Two more questions need to be answered regarding the student's dependent status.  For the fall term, did the student enroll in August or September?  Did the student still live with the parents during his "time off".* Either way, the student can claim the tuition credit if  the parents should forego claiming him as a dependent (even if they can claim him).  What's still unanswered is whether he gets the refundable portion of the AOC ($1000).  Worse case: the parents forego the $500 dependent credit and the student only gets a $490 AOC or Lifetime Learning Credit (LLC) (in this case take the LLC and save the AOC for a later year).    *There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test. A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if: He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation He lived with the parent (including temporary absences such as away at school) for more than half the year  

You should not amend too soon.    Amending while the IRS is still processing your return can lead to confusion and long delays.   Wait for the IRS to process your return and then amend.  What was the huge mistake?  Sometimes the IRS catches mistakes and corrects them.

Yes, if you are married and chose to file as single instead of married filing separately, you will need to Amend Your Return.       File an amended return if there's a change in your filing status, income, deductions, credits, or tax liability.

No. As a part-year resident of North Carolina, if your total gross income for 2024 does not exceed the amount shown in the Filing Requirements Chart for your filing status, you don't need file a 2024 North Carolina individual income tax return.   

To clarify, you didn't take your RMD in 2024 but took it in 2025 since you just turned 73 in 2024?   If yes, then you do not report a 1099-R on your 2024 return. You will report it next year on your 2025 return when you get the 2025 Form 1099-R. Please make sure you also take the RMD for 2025 by December 31.   You will need indicate in TurboTax that you didn't fail to take the RMD:   Click on "Search" on the top right and type “1099-R” Click on “Jump to 1099-R”  Continue until you get the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD".