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1099-Q and 1098-T

bmshah1 — Wed, 11 Mar 2026 04:10:58 GMT

I received both a 1099-Q and 1098-T for my son going to college. He didn't receive any scholarships. I'm planning to file a return for him as he had some income last year through a summer internship program. I will be showing the 1099-Q on his return and 1098-T on my return (although I don't qualify for any education credits). The money from the 529 plan went directly to the school.

My questions are as follows:

1. We paid for both tuition and room and board through the 529 plan for fall. 1099 has a gross distribution shown in box 1, earnings in box 2 and basis in box 3. Would the gross distribution count as an income for my son?

2. Does he have to show the 1099 on his return as all the distributions went towards qualified education expense?

3. For calendar year 2026 if I end up paying R&B directly through my own pocket would that be considered as a qualified education expense that I can show on my return? What documents/proof would I have to keep to show R&B on my return for next year?

Re: 1099-Q and 1098-T

AmyC — Wed, 11 Mar 2026 18:30:08 GMT

1. The taxable portion of the Q is the only income and it goes on the person receiving the funds, which was the school. It seems you have no taxable distribution so there is no income to report. Tuck the Q into your tax folder. It isn't entered this year.

2. No, he did not receive the funds so it won't go on his return.

3. Yes, as long as the room and board does not exceed the amount listed for the college. For example: If the college expects off campus housing to be $xx but your student lives in a high rise luxury penthouse, the expense allowed is the $xx by the college. On campus housing, keep the receipts. Off campus housing, check the school website.

IRS Publication 970, Tax Benefits for Education states that nontaxable distributions should not be entered.

Re: 1099-Q and 1098-T

bmshah1 — Thu, 12 Mar 2026 02:05:38 GMT

@AmyC for last year we paid for R&B through 529 so I'm assuming I cannot claim it on my taxes.

For 2026 for the winter quarter we ended up paying for the R&B through 529 plan - which per your response will not be deductible. For winter quarter we will pay his dorm expense out of pocket and starting fall my son is planning to rent an apartment. Based on your response I'm assuming I should be able to deduct the dorm expense and as long as the apartment falls within the expected off campus cost I will be able to deduct it on my return. Did I get that right?

Re: 1099-Q and 1098-T

AmyC — Thu, 12 Mar 2026 15:18:49 GMT

1.The amount of room and board that is reasonable (according to the college) is deductible from the 529 withdrawal, just not the excess.

2. Yes. dorm and apartment expenses within the college guidelines will go against the 529 withdrawal.

3. Yes! The 529 is not taxable when used on eligible expenses along with qualified room and board.

Re: 1099-Q and 1098-T

bmshah1 — Fri, 13 Mar 2026 23:31:14 GMT

@AmyC "The amount of room and board that is reasonable (according to the college) is deductible from the 529 withdrawal, just not the excess." on whose return can I deduct this amount - mine or my son? In my case the R&B was paid for the on campus dormitory so the money for R&B went straight to the school. The 529 is issued with my son's name.

Re: 1099-Q and 1098-T

MarilynG1 — Mon, 16 Mar 2026 19:32:56 GMT

Room and Board is not a deductible Education Expense. If Room and Board is paid with a 529 distribution, it doesn't have to be reported as an education expense on a tax return, nor the 1099-Q reported.

Here's more info on Qualified Education Expenses and Form 1099-Q.

@bmshah1