![]() Turbo accepted all this without further ado. My child reported 1099-Q info on her turbo 1040 I reported 1098-T info on mine, and also took American Opportunity Credit. My dependent child is the 529 beneficiary and attending college (one in 2021-2, two in 2022-23).įor 2021 tax year, we received both a 1098-T and 1099-Q, as some 529 funds were paid directly to my child, and other 529 funds were paid directly to the college. Mea culpa for poorly crafting my original inquiry. So, the TT interview is complicated to accommodate that. TurboTax allocates QEE, in that order, until you tell it otherwise. You are allowed to allocate expenses for the best tax benefit. Allocate them to the 529 distribution (1099-Q) so that it will not all be taxable. ![]() Allocate then to scholarships (so that the scholarship remains tax free).There are three things you can do with your Qualified educational expenses (QEE): You must determine the taxability of any distribution." On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. The 1099-Q is also only an informational document. If neither applies to you, you don't need to enter the 1098-T. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. The 1098-T is only an informational document.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |