1099-Q

[aupharm]

My daughter is a dependent on my tax return and we received a 1099-Q from a pre-paid college tuition program with my daughter's name and ss# on it. The money was paid directly to the school. Should the 1099-Q be put on her tax return, which causes her to owe tax on her small summer job money, or be put on my tax return? 

[MinhT1]

If the money was paid directly to the school, then the whole distribution reported on the form 1099-Q was used for education expenses and you are not required to enter this form 1099-Q on your tax return (or your daughter's).

[aupharm]

Just one more question, Since the 1099-Q is not filed on mine or my daughter's tax return, Do I  still get to file her education expenses on my tax return since she is a dependent and the distribution only paid for the tuition and did not include books and living expenses? Thanks very much for your HELP!!!!!!

[MinhT1]

You cannot use the tuition paid by the 1099-Q as qualified education expenses to obtain education credits such as the American Opportunity credit or the Lifetime Learning credit, as it would be double dipping.

You can still use other qualified education expenses such as books and supplies to claim education credits.

Room and board are not qualified education expenses which can be used for education credits. However, they can be used to justify your 1099-Q distribution. Then some or all the tuition can be used for education credits. It is up to you to apply these expenses so that you can get the largest tax break.

[aupharm]

I just want to make sure I have this right, to claim the education deductions on my tax return do I need to include the 1099-Q on my return? or do I just forget about putting 1099-Q on return and just  add up tuition, books and fee's, and room and board and subtract  the distribution amount on 1099-Q and claim the difference on my tax return as education deduction ? Thanks again for your help!!!!!

[gloriah5200]

You would enter the 1099-Q in the return of the recipient of the tax reporting document.

If you claim your daughter as a dependent and plan to claim the education credit on  your return for her education expenses, then you would also include the information input on her 1099-Q on the Education Credit section of your tax return unless she is claiming the 1099-Q as taxable income on her return.  

Where do I enter 1099-Q?