1099 Q and 1098 T

[sanvanthc1]

Hello,

My son received 1099 q and 1098 T on his name and SSN, he is a dependent and has no income and no scholarship. We are not eligible for any education credits. All distributions are qualified. Should my son file return just so it is indicated as all qualified expense and non taxable to IRS?

[MinhT1]

If you are sure that the 1099-Q distributions are justified by education expenses, then your son is not required to report the 1099-Q. As he has no oher income, he is not required to file a tax return.

[sanvanthc1]

Thanks for the reply. Incase if we just enter details of 1099 q and 1098 T and file return with no income, is it wrong to do that or not allowed? I mean so we inform that it is qualified.

[DawnC]

it is not necessary to file the return as it will have no income and no tax due.  You should keep detailed records in the very unlikely case of an inquiry.    See 1099-Q Guide.

[sanvanthc1]

Thanks, my question is mainly if we go ahead and file, will it avoid any future inquiries or is it not allowed to file with no income or no tax due?

[DawnC]

That is doubtful; it may cause more inquiries if you file an unnecessary tax return.    You can file a return with no income by mail (it can't be e-filed), but that is not recommended.  

[sanvanthc1]

Appreciate your clarification. One final question, do we need to mention or add these 1099 q in our return? I mean in parents MFJ return? as mentioned it is on my dependent son’s name and SSN, we are not eligible for education credits.

[sanvanthc1]

Sorry, One final question, do we even need to mention or add these 1099 q in our return? I mean in parents MFJ return? as mentioned above it is on my dependent son’s name and SSN who has no income, scholarships, we are not eligible for education credits. All are qualified expenses.

[KrisD15]

No.

Form 1099-Q is not "Matched" on the tax return by the IRS, it is used to make computations in the TurboTax program. 

If no tax and no credit needs to calculated, the form is not needed. 

Keep a copy with your tax return.