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I just entered my 1099-Q info. TT is saying that my daughter needs to report an amount of that on her tax return. That seems wrong. Any ideas why this is happening?

Possibly related: I used the 529 to cover her room and board. TT says that is deductible, but I can't find a place to enter the room and board expenses, unless I'm supposed to enter it where it asks about books and materials. Does anyone know where I enter room and board costs information?
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1 Reply
AmyC
Employee Tax Expert

I just entered my 1099-Q info. TT is saying that my daughter needs to report an amount of that on her tax return. That seems wrong. Any ideas why this is happening?

The room and board is under the books and materials question. You will need to mark yes to books in order to enter the room and board. However, if all of the 1099-Q went to qualified expenses, the IRS says not to enter the form.

 

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.

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