Question

1098-T Expenses Eligible for 529 But Not AOC

Forum|Forum|5 years ago
February 10, 2021
1 reply
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TurboTax doesn't ask enough questions to accurately process expenses eligible for 529 plan but excluded from AOC. For example, AOC specifically excludes "Medical expenses (including student health fees)" and "Transportation".

The total on my 1098-T includes a health fee and a transportation fee. So when TurboTax asks whether the amount paid is different than the 1098-T, I must exclude these fees. But step-by-step never asks a question which would allow it to identify fees excluded from AOC but eligible for a 529 distribution.

Is the only way to get TT to include these fees in my return to complete Part VI of the Student Information Worksheet manually?

Could I complete step-by-step (including "maximize my deduction") and then go into the Worksheet and override the value for AOC expenses, reducing it by the amount of these fees? Would I then need to re-run "maximize my deduction" or *avoid* re-running it?

T

ThomasM125

I entered a form 1098-T in the program and noticed that I was not asked for expenses outside of books and materials. However, after I went to the entry screen for Coverdell ESA and 529 qualified tuition programs in the Miscellaneous Income section of TurboTax and entered a form 1099-Q, I was then able to find an entry screen in the form 1098-T section to enter Room and Board, Special Needs and Computer, software and internet expenses.

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