Form 1040, Schedule 1, Line Z on my 2023 return shows Qual State Tuition Prgm from 1099-Q $ 645. Turbotax customer support cant tell me how this is calc'd?

[GRAZIANOTHOMAS]

I have two 1098Ts (two diff colleges) and two 1099Q's (one issued to my son (payments directly to school) and one issued to me the father (reimbursement for book costs and such).

[KrisD15]

To clarify-

Are you also getting an education credit?

Is the program taxing part of the distribution in order to get an education credit? 

If not, are you entering the 1099-Q and stating that it was all used for education expenses? 

[GRAZIANOTHOMAS]

No, I am not claiming any education credit (above income threshold).

The issue is whether the 529 distribution is taxable in 2023.

529 plan paid the school directly on 12/26/2023 by issuing a check. So, the 12/26 payment is on my 1099Q for 2023 as a distribution for education expenses from 529.

The school didn't deposit the check until 1/4/2024 (applied against Spring 2024 tuition) and so the school won't include it in 1098-T until 2024.

So, just a mismatch in the reporting between 529 plan vs. school tax reporting for 2023/4.

If I pickup the school's 2023 1098-T in TurboTax (missing that December 2023 payment) then TurboTax says my 1099Q is partially taxable.

So I think I want to deviate from the 1098-T and pick up the additional amount paid to the school on 12/26/2023, even though they didn't deposit until 1/4/2024.

The 529 plan paid the school directly, so it was definitely paid towards tuition.

Thanks !! 

[KrisD15]

Yes, in your case I would use the "What if this is not what I paid the school" link under Box 1 on the 1098-T and enter the adjusted amount to include the payment made through the 529. 

If you need to enter the 2024 Form 1098-T, be sure to repeat the process and adjust down. 

Keep payment records with your tax file.