1098-T

[okrandy]

I have two daughters in college.  I have 529 accounts for both of them, of which I am the owner.

1.  In the Education section, TTax is only picking up the 1098-T amount for one daughter; it is not adding in the 1098-T amount for the second daughter. Why? She is a full time student working on a four year degree. (Not a felon by the way.)

2. For the daughter for which TTax is picking up the 1098-T number, TTax is subtracting the scholarship amount from the amount in box 1 of the 1098-T.  The heading of Box 1 is payments received for qualified tuition, etc.  I am assuming that refers to payments from me. Is that correct? 

Help.

[AmyC · Accepted solution]

1. Two possibilities in your return:

• You have to add the second daughter and then the program will ask about the enrollment status, name of college and if there is a 1098-T. You can add it there.
• If you have both students showing, you can select to edit the one missing the 1098-T. You can either add the school or edit the school to add the missing form.

2. No, the college does not enter your payments, only the total tuition. You have 529 which yields a 1099-Q and 1098-T with box 1 tuition paid and box 5 scholarship.

The 529 went to room and board, then qualified expenses. If all of it was used on qualified education expenses, do not enter the 1099-Q. IRS Pub 970 states: Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return.

For the 1098-T, box 5 scholarships may have been required to use for school or could have been for living expenses. Box 1 tuition is all amounts paid which may include 529 and scholarship money. If you are eligible to claim an education credit, all of this can get very tricky. Please  see another post of mine here.

[okrandy]

Wow.  I guess I have been doing this incorrectly for awhile.  

Ok, let me work on this.  Thanks much.