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Level 3
posted Mar 24, 2023 9:54:38 PM

Line for 1098-T shows ZERO after completing it

I would like to understand the following:

  • Enter relevant data into TT for 1098-T form in the section "Deductions & Credits"
  • Upon completion TT shows ZERO amount

Is this inference by TT valid? Why would it show the amount as ZERO for 1098-T but report the full amount of Coverdell ESA distribution.

 

Could I request an explanation.

 

Regards,

Ramesh 

0 1 362
1 Replies
Expert Alumni
Mar 27, 2023 12:13:12 PM

The order in which you enter the forms affects the program calculation. The 1099-Q must be entered before the 1098-T, if it needs to be entered at all. In addition, the program may try to hold out money to qualify for education scholarships rather than allowing the 1099-Q.

Delegate 1099-Q expenses to room and board, then education expenses. If all of the money was spent on qualified expenses, don't enter the 1099-Q.

 

TT article  Guide to IRS Form 1099-Q: Payments from Qualified Education Programs.