topic 1098-T in Education

1098-T

FiveMileLake — Mon, 22 Jun 2020 04:02:52 GMT

Turbo Tax (Deluxe) will not allow me to enter 1098-T information on my return.

Says that income level doesn't allow for deduction....so no place for me to enter tuition paid.

I have a separate 1098-T for two of my children.

One is a a full time college student, the other is a HS student who took a class through local college.

Need/want these 1098-T details included as I need offset for 529 withdrawal.

Thanks in advance for your assistance.

Re: 1098-T

Hal_Al — Mon, 22 Jun 2020 12:12:52 GMT

Alternatively; you can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry. You don't the worksheet; your own records are adequate.

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."

That said, the secret to getting TurboTax to let you enter the 1098-T is to enter the 1099-Q first.

Re: 1098-T

Carl — Mon, 22 Jun 2020 14:20:07 GMT

I suspect @Hal_Al misread your post, as his response refers to a 1099-Q, not 1098-T you asked about.

If your AGI is above $160,000 if filing joint, or $80,000 if filing single then none of your education expenses are deductible.

Likewise, if you are filing married filing separate, then both of you automatically disqualify for quite a number of deductions, including the education deductions.

Therefore, it makes no sense to enter that which you can not deduct.

Re: 1098-T

FiveMileLake — Mon, 22 Jun 2020 22:17:34 GMT

More Details:

So I have a 1099-Q - for a 529 distribution....looking to cover that with expenses so as to not pay taxes or penalties for non-designated/qualified distributions.

Room and board + books/etc. doesn't quite make up the amount of distribution...so need/want to report tuition expenses...which TurboTax won't allow.

Is the only solution to start over? (Entering the 1098-Q & 1098-T(s) first?)

Seems like a flaw worth fixing...I can't be the only one in this situation.

Re: 1098-T

Hal_Al — Mon, 22 Jun 2020 22:53:55 GMT

Again, if Room and board + books/computers + Tuition and fees is more than amount of distribution, you do not need to enter either the 1099-Q or the 1098-T.

But some people are convinced they "have to" enter all that (they don't). Yes, you can start over, but try this first:

It sounds like you managed to enter room & board and books. That means you are in the education section. Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary". Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to the section you want to change; tuition, in your case.

Re: 1098-T

JosephK — Sun, 12 Jul 2020 17:11:36 GMT

If your MAGI (joint) is over $180,000, TurboTax does not allow the "Tuition and Enrollment Fees" line to be edited. Please help.

I'm stuck in a situation where the 529 distribution was paid to me, the parent and account holder, not my daughter who is the beneficiary. So box 6 on the 1099Q is checked stating the above, and I heard this gets the IRS's attention. The distribution was qualified as it matched the tuition, room & board fees from the University. Nothing should be taxable, nor should there be any 10% penalty. I believe, if I'm understanding this topic correctly, if the 1099Q distribution is fully qualified (equals or is less than university costs) then you don't even have to report this on your tax return.

And yes, this is the first year I'm going through this as my daughter was a freshman. Also helps explain why my daughter, 18 at the time, was not more responsible in notifying me that tuition was due; by the time she "woke up," we already incurred a late fee and had to get payment in to the school within two days; that is why I paid it, and the 529 reimbursed me. Kids!!! Not making that mistake again. Thanks so much!