Daughter is full time student & is being claimed as dependent
has enough earned income that she is required to file 1040 form
Has received a 1099Q form with her SS#
If I file the 1099Q on her 1040 ~ do i also place all educational expenses on her taxes?
If the 1099-Q lists your daughter's SS# as the recipient, then she must enter the 1099-Q on her return. Since she is claimed as a dependent on your tax return, she is unable to claim any of the Education Credits (you claim them) but she can still enter her qualified education expenses to hopfully make the earnings (listed in box 2 of the 1099-Q) either partially or totally tax free. If her total qualified education expenses, minus any paid by financial aid and minus any used by you for the Education Credit, is greater than the entire distribution (box 1 of 1099-Q) then all of the earnings are tax free. If less then the distribution, then a percentage of the earnings will be taxable income.
Qualified Education Expenses for the Education Credits are tuition, fees, course related books, supplies and equipment. HOWEVER, Qualified Education Expenses for the 529 distribution are tuition, fees, course related books, supplies, equipment, PLUS room & board, computer equipment, and special needs expenses.
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