I am the sole contributor to a 529 Plan. My daughter is the beneficiary. She received a 529 Plan distribution in 2024 for qualified educational expenses. She received no other educational grants of any kind. As such, it is my understanding that:
1. If we are not eligible for any kind of educational tax credits, then we do not need to file form 1098-T.
2. If 100% of a 529 Plan distribution was used for qualified educational expenses, then we do not need to file form 1099-Q.
Is the above correct? Thank you.
1. Correct, if your income is too high, you do not need to file. From IRS Education Credits : ...MAGI must be $80,000 or less ($160,000 or less for married taxpayers filing jointly). If your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married taxpayers filing jointly), the amount of your credit is reduced. If your MAGI is over $90,000 ($180,000 for married taxpayers filing joint), you can't claim the credit.
2. Correct. IRS Publication 970, Tax Benefits for Education states:
If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions.
1. Correct, if your income is too high, you do not need to file. From IRS Education Credits : ...MAGI must be $80,000 or less ($160,000 or less for married taxpayers filing jointly). If your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married taxpayers filing jointly), the amount of your credit is reduced. If your MAGI is over $90,000 ($180,000 for married taxpayers filing joint), you can't claim the credit.
2. Correct. IRS Publication 970, Tax Benefits for Education states:
If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions.