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alitexas
New Member

Why did TurboTax Deluxe choose to file a 1040EZ for me instead of a 1040 when I had a 1099-Q form??

Why did TurboTax Deluxe choose to file a 1040EZ for me instead of a 1040?
Does the information on form 1099-Q only show up on the worksheets when entered?
I received a 1099-Q for a 529 QTP distribution in 2016.  This was used to cover one of two semesters of qualified education expenses. TurboTax required me to upgrade to TT Deluxe because of my 1099-Q form.  In order to continue with the interview I paid and upgraded to TT Deluxe. I entered the 1099-Q and then entered Room and Board expenses when asked for by the interview.
After going through all the questions and getting to the point of reviewing the final forms that would be submitted to the IRS, I discovered that TurboTax created only the 1040EZ and not the 1040.  So now the IRS will not see the 1099-Q form?
I'm a dependent and will be claimed on my parent's 2016 tax return.  I also had a part time job for which I received a W2 and was filing a tax return for a refund.  I'm using the online version of TurboTax Deluxe
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Accepted Solutions
ChristinaS
New Member

Why did TurboTax Deluxe choose to file a 1040EZ for me instead of a 1040 when I had a 1099-Q form??

The IRS never sees the 1099-Q form, as there's no "output" form which addresses a 1099-Q calculation. If its taxable, the taxable amount goes on Line 21 of the 1040. If not taxable, nothing happens. There isn't an actual tax form which shows the reconciliation of 1099Q earnings and education expenses. Its a behind the scenes event, with only worksheets (that the IRS doesn't see).

Turbo Tax does require an upgrade to do the calculations and correlate with any possible education tax benefits/ credits. This is not just about the tax forms produced, but about the content itself. In all fairness, if you know its not taxable due to room and board, you don't need to go through the motions of entering the form at all.

If you are a dependent, please be sure that your parents account for the 1099-Q figures, if your room and board isn't greater than all the earnings on the distribution.

 

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ChristinaS
New Member

Why did TurboTax Deluxe choose to file a 1040EZ for me instead of a 1040 when I had a 1099-Q form??

The IRS never sees the 1099-Q form, as there's no "output" form which addresses a 1099-Q calculation. If its taxable, the taxable amount goes on Line 21 of the 1040. If not taxable, nothing happens. There isn't an actual tax form which shows the reconciliation of 1099Q earnings and education expenses. Its a behind the scenes event, with only worksheets (that the IRS doesn't see).

Turbo Tax does require an upgrade to do the calculations and correlate with any possible education tax benefits/ credits. This is not just about the tax forms produced, but about the content itself. In all fairness, if you know its not taxable due to room and board, you don't need to go through the motions of entering the form at all.

If you are a dependent, please be sure that your parents account for the 1099-Q figures, if your room and board isn't greater than all the earnings on the distribution.

 

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