1099-Q &1098-T

[BenActon]

My dependent 25 year old granddaughter is in graduate school working toward a degree, at least half-time. In 2020, she took out $5940 from her 529 account for tuition & received a1099-Q. The school sent her a 1098-T for $5940. She is not filing her own tax return. She has no other income. She did not pay for books & supplies out of the tuition money. She received no scholarships or financial aid. She did not receive the American Opportunity or Hope Credit.

I'm trying to enter her education expenses in my tax return but  the data entry form only lists expenses for books, classroom supplies & lab equipment. There is no provision for entering tuition. The instructions say that I don't need to enter this 1099-Q because I'm not the recipient. For the 2019 tax year, I had similar tuition entries & there was no problem. Now how do I handle her 1099-Q & 1098-Q? 

[MaryM428]

You do not need to enter the 1099-Q because you are not the recipient and because there is no taxable income generated by the 529 withdrawal.  

Your granddaughter is 25 and is no longer a qualifying child.  She is now a qualifying relative. She is in graduate school so you no longer can claim the American Opportunity Tax Credit.  You can claim the Lifetime Learning Tax Credit by following these steps.
 

•  Your granddaughter can file a tax return and have up to $4350 in taxable income.  She will file the 1099-Q. The combined 1099-Q amount that she claims as taxable income and any other income she may have made during 2020 cannot be more than $4350.  If she claims income above $4350, she will not longer be your dependent as a qualifying relative.
   
• Then you can claim the 1098-T and get the Lifetime Learning Tax Credit on $4350. 

[edited 3/2/2021 | 1:01 pm PST]

[Tomographic]

I completed my return, printed to mail, not mailed yet, found a 1099-R missed (thought it would be/should have downloaded along with other forms.  Before mailing incorrect return want to redo. How?

[AnnetteB6]

Since you have not yet mailed the return, you can make changes to add the missing Form 1099-R without going through the amending process.  

In order to get back into your return to make changes, you will need to indicate that you are trying to Add a State.  This will open up the return again so that you can edit it.  

The step by step instructions are in the following TurboTax article, just stop after step 4 and make your changes:

How do I change from mail to e-file in TurboTax Online?

@Tomographic