Both forms are considered informational, not mandatory.
The 529 was used for qualified education expenses which can include room and board, even off campus, Since the 1099-Q was not income, i...
See more...
Both forms are considered informational, not mandatory.
The 529 was used for qualified education expenses which can include room and board, even off campus, Since the 1099-Q was not income, it should not be entered. Tuck the 1099-Q into your tax folder. IRS Publication 970, Tax Benefits for Education states that nontaxable distributions should not be entered.
The 1098-T with the qualified education expenses of $4,000 or more can qualify you for an education credit. If you qualify, enter the 1098-T to claim the credit. Currently:
For the full credit, your MAGI (modified adjusted gross income) is less than $80,000 ($160,000 if you're filing jointly)
For a reduced credit, your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you're filing jointly)
There is no credit given if your MAGI is above $90,000 ($180,000 if you’re filing jointly)