Entered1099-Q showing reimbursement to me of child's eligible college expenses that paid for. This distrib shows on step by step page entitled "Form 1099-Q Summary." A few pages further, it has me enter the expenses against the reimbursement so Im not taxed on the distribution. Everything seems fine there but when I go to child's student wksht on our tax form, TT has changed some of the expenses and the total amount is about $1300 higher than my actual expense. Tuition & room/board are unchanged, but it increased books/other course materials from $894 to $1721, computer-software- internet by around $300. The distribution to me is zeroed out, but I want to make sure this is right bc if there are any unused expenses, they could go to child's form to offset part of a distribution they had. Why is TT changing the numbers? Should I re-enter the correct #s on the student worksheet? Something else? Thanks for any help.
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Without seeing the entries and forms, I don't know what may have gotten doubled or entered extra. A worksheet is unimportant and does not go to the IRS. If the 1099-Q is zeroed out, then you should not enter it on your return. For your child, since there is a taxable portion, it should be entered along with the expenses to reduce the taxability.
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.
Page 45 repeats: Don't report tax-free distributions (including qualifying rollovers) on your tax return.
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