1099t and 1099q

[seemaesq]

My child only earned about two hundred dollars on a w2. His 1099 q was twenty five thousand gross. His 1098t total was over thirty thousand. Do I need to report anything on my taxes or does he have to do his own taxes or do neither one of us have to do anything? He is nineteen years old and in school full time and my dependent.

[MinhT1]

If your son is eligible for the American Opportunity Tax credit and your income allows it, you can claim it on your tax return. You can use $4,000 of his tuition to claim $2,500 of AOTC.

That would leave $26,000 of tuition to cover the $25,000 distribution of the 529 plan. He doesn't need to report form 1099-Q on his tax return as it is not taxable.

You do not report your son's income on your tax return. With $200 in wages, he's not required to file a tax return.

[seemaesq]

Thank you!  I was reading the same, but Turbotax home/office is making me enter the VA529 info even though it is in my son's name.  What do I do?  It is even saying it is taxable to me!!

[AmyC]

Delete the 1099-Q and tuck it into your tax folder. The 529 distribution should not be entered in the program since it was used for qualified expenses. IRS Publication 970, Tax Benefits for Education states:

Page 45: Don't report tax-free distributions (including qualifying rollovers) on your tax return.