topic 1098T and 1099Q: lifetime learning credit and self-beneficiary of my 529 in Education

1098T and 1099Q: lifetime learning credit and self-beneficiary of my 529

bellowman — Wed, 02 Feb 2022 23:01:30 GMT

I am a grad student. My tuition was $20,000 for 2021. I withdrew $4,000 out of my state 529 to help pay for tuition and books, so I got a 1099Q. I am a self-beneficiary of my 529.

I read that I don't have to report my 1099Q because I used all of the distribution for qualified expense, my tuition and books.

Can I still claim the lifetime learning credit because I still have remaining total qualified expense after help from my 529?
$20,000 total educational expenses
- $4,000 distribution from 529

$16,000

Of that $16,000, can I claim 20% of it up to $10,000 so $2,000? Of my educational expenses, $1000 was books.

Additionally, this was the same situation for last year, but I didn't claim the lifetime learning credit because I was worried about double dipping. Can I use TurboTax to do an amended tax return for 2020?

Thank you very much!!

Re: 1098T and 1099Q: lifetime learning credit and self-beneficiary of my 529

Hal_Al — Thu, 03 Feb 2022 00:13:23 GMT

Q. I read that I don't have to report my 1099Q because I used all of the distribution for qualified expense, my tuition and books. Correct?

A. Yes. Room and board, including off campus (with limits) are also qualified expenses,

Q. Can I still claim the lifetime learning credit because I still have remaining total qualified expense after help from my 529?
A. Yes. Your numbers are correct. As you can see, you coulda even withdrawn more 529, tax free.

Q. Additionally, this was the same situation for last year, but I didn't claim the lifetime learning credit because I was worried about double dipping. Can I use TurboTax to do an amended tax return for 2020?

A. Yes.

Re: 1098T and 1099Q: lifetime learning credit and self-beneficiary of my 529

bellowman — Thu, 03 Feb 2022 01:06:05 GMT

Thank you very much!