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Q. Who should report 1099-Q (not 1099-T)? It's sent to me, but the beneficiary is my daughter. A.  Do not enter the 1099-Q, from the 529 plan distribution, at all. Not on your return, not on the student's. It is fully covered by room & board.  It does not matter that room board were actually paid by scholarship, because it was not paid by TAX FREE scholarship.  Technically, you are the "recipient" of the 529 distribution. If it needed to be reported (and it doesn't) it would go on your return.    Q. Do I even claim her as my dependent when the scholarship and her income covered her housing and other living expenses? A. Yes. Support by scholarship is excluded for the dependent support calculation.   Q. Since I didn't pay any money for her college, do I even need to enter 1098-T on my return? A. No. The 1098-T (like the 1099-Q) is only an informational document.  There is no requirement for it to be reported.  That said, see "loop hole" below.  You are going to (most likely)  want to report it, on both your return and hers. She needs to report it on her return, with adjustments, to enter the scholarship income.   The $2200 distribution was not income , on her return (nor yours). Her income last year was $27,000+$20,000 = $47,000. The $27,000 can be reduced by any book, computer and software expenses.  We are going to increase her income by $4000, so you can claim the $2500 tuition credit. It takes $4000 of tuition to get the maximum AOC credit. If you didn’t claim it. In previous years, you should look at filing amended tax returns. The deadline for filing an amended 2021 return is 4-15-25.   Q. I read from some posts that I may be able to "split" the scholarship excess. Is it true? If yes, would this work? Is this a correct way to split it? A. It’s somewhat true, but that’s not the correct way.  On your return, you enter $4000 in box 1 and 0 in box 5.  On her return, she enters 0 in box 1 and $31,000 in box 5.   Q. Is it legal to do this? A. Yes.   Q. Will this help lower the tax that we owe? A. Yes Your tax will be lowered by $2500 and she will pay $480 -$1000 more on her return, depending on your tax bracket (the kiddie tax will apply).   There is a tax “loop hole” available to claim an education credit, for the parents of students on scholarship. The student reports all his scholarship, up to the amount needed to claim the American Opportunity Credit (AOC), as income on his return. That way, the parents  (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship.  You cannot do this  if the conditions of the grant are that it be used to pay for qualified expenses. Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income and nobody can claim the American opportunity credit. But if she reports $6000 as income on her return, the parents can claim $4000 of qualified expenses on their return. Books and computers are also qualifying expenses for the AOC. So, extending the example, the student had another $1000 in expenses for those course materials, paid out of pocket. She would only need to report $5000 of taxable scholarship income, instead of $6000. The IRS actually encourages use of this technique. From the form 1040 instructions: “You may be able to increase an education credit if the student chooses to include all or part of a Pell grant or certain other scholarships or fellowships in income. For more information, see Pub. 970, the instructions for Form 1040 and IRS.gov/EdCredit".  PUB 970 even has examples of how to do the “loop hole”.

So I bought intuit turbotax on amazon and opened on my Max laptop. I pulled my information from 2023 tax return and the information updated for me. I did my 2024 tax and filed my federal but when I log into turbo tax online it does not show anything ive done for 2024.  

Here is how to report.   Open or log into your return Go to investment income Go to Stocks, Cryptocurrency ....... Classify this as other Follow all the prompts that follow to determine what your capital gains are on the sale. If you paid a foreign tax on the sale, you may be able to claim a foreign tax credit.   Go to Federal Deductions and credits  Estimate and other taxes paid  Foreign Tax Credit>start or revisit  As you go through the screens, when it asks "Tell Us About Your Foreign Taxes" select none of these apply. When it asks if you wish to take the deduction and credit, take the credit. Continue through until you reach a screen that says "No other income or expenses" Say no Continue through until it asks the income type, say Passive Income Next add a country pick the country of your choice. Other Gross Income say Sale of Foreign Real Estate and the Gross Amount of the sale Continue through the interview until it asks for the foreign taxes you paid, here record the amount.   Now you are done reporting the foreign taxes. Just keep going through the section without making any more entries. You will have finished reporting your gross income from the sale and the foreign taxes paid. 

You were supposed to be filing form 8606 every year to keep up with it. You will need to go back and recreate those records and send them to the IRS. You need to: print each year form 8606, IRS prior year 8606 forms and instructions fill it in with the correct numbers sign and date the bottom of the form mail each year separately.  See Where to file paper tax returns with or without a payment I personally helped someone go back over 30 years because the IRS required them to do it. The other option would be to say there is no basis, if you never filed an 8606.  

What?  If it’s asking why you got a 1099G you are in the wrong place.  Delete out of this one.   To enter a state refund just type  1099-G (with the dash)  in the search box at the top of your return and click on Jump To it.   The amount is in box 2.  That is for a state refund you got in 2024 for your 2023 return.   It goes on your 2024 tax return.  But you might not need to enter it at all.   Enter the 1099G box 2 under  Federal on left Wages & Income  Scroll down to 1099-Misc and  Other Common Income      You might need click on Show More to expand the section   Then it's the first line for Refunds Received for State/Local Tax Returns - Click Start      You do not want the next line that says Other 1099G Income   On the first screen check YES - Received a State Refund.   But you might not need to enter it at all.     Is it for a state tax refund you got in 2024 for your 2023 or prior state return?  Is the amount in box 2?  You may not need to enter it.  Did you take the Standard Deduction on that year federal return? A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

If the grand total of the dividends on the 1040 schedule B are exactly as the original amount there will be no problem. I've used this technique for years and never had any problems. TT is most certainly aware of this issue but for unknown reasons chooses to ignore it.

So they are going to wait till 2025 tax season to see what my taxable income. What if I lose my job or die then what happens to the taxes? I was asking if they would use my taxable income from 2024 amount to how much I’d owe for capital gains when I sell my house this year