Whose tax form does the 1099Q get claimed on? parents or daughter being claimed as dependent?

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?
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    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.
    • Thanks, vdirjohn, but the total distrubution from the 1099-Q includes cost for tuition plus room/board plus books, etc.  Using your suggestion, the qualified ed expenses (primarily tuition) less scholarships less the $4k for the Education credit will leave an amount that is substantially less that the distribution from the 1099-Q.  It seems that we're comparing apples vs. oranges.

      Or, should one add the cost of room/board + books to the tuitiion cost to come up with a 'qualified education expense?'

      Thanks in advance
    • Quote:  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.

      Question:  How do you do this in turbo tax?  It keeps insisting my son pay taxes on the amount of box 2 in the 1009-Q
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    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.
    • I was all over the Turbo Tax website, the internet and the IRS web site.  The answers are quite varied.  So I called the IRS and sat on hold for an hour and fifteen minutes.  Then I got Mrs. Evans, 1000705634.

      We have a dependent daughter and a 529 account.  We got two 1099-Q's.  
                one with my wife's SSN (The amount we withdrew to pay for room and board, books, computers, etc.)  
                one with my daughter's SSN (the amount was the direct payment to the university for tuition and fees)
                 Our Student has earned income from teaching and from an undergraduate research fellowship.

      The answer depends on several conditions:
      1.  2011 Return 1099 -Q is For a 529 Qualified Tuition Plan  (Not a Coverdell ESA)
      2.  We are claiming the student as a dependent on our return
      3.  We are claiming an American Opportunity Credit

      If the  Distribution is less than total Qualified Educational Expenses (Don't have to report and it does not matter which return you enter the 1099-Q, ( in our case I put it on the parents.)
      or
      If there is an Excess Distribution (which is taxable)
                Enter the 1099-Q to the return which matches the Social Security Number
                Enter the 1098-T on the parents return
                Split the other (non-1098-T) educational expenses, (books, room and board, computers, etc)  but the              dependent's expenses cannot exceed the total of the 529 distribution plus the student's earnings)
    • Enter the 1098-T on the parents return
      Split the other (non-1098-T) educational expenses, (books, room and board, computers, etc) but the dependent's expenses cannot exceed the total of the 529 distribution plus the student's earnings)

      If we place the 1098T on the parents return, and I am putting the 1099Q on my daughter's return,  where do we place the educational expenses like Room and Board? In the line Tuition & Enrollment Fees Not Included--though the Turbo Tax prompt notes that it should not go there.
    • In my opinion, the Turbo Tax program is very weak in this regard.  It sure would help users if TT asked more prompt questions and enabled parents to easily enter the 1098-T and 1099-Q information in a comprehensible manner.
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