turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Education expenses--TT is changing them--why, is this ok?

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.  

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
AmyC
Expert Alumni

Education expenses--TT is changing them--why, is this ok?

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.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies