Is it correct that we do not need to file forms 1098-T and 1099-Q?

Forum|Forum|1 year ago
February 3, 2025
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I am the sole contributor to a 529 Plan. My daughter is the beneficiary. She received a 529 Plan distribution in 2024 for qualified educational expenses. She received no other educational grants of any kind. As such, it is my understanding that:

1. If we are not eligible for any kind of educational tax credits, then we do not need to file form 1098-T.

2. If 100% of a 529 Plan distribution was used for qualified educational expenses, then we do not need to file form 1099-Q.

Is the above correct? Thank you.

Best answer by AmyC

1. Correct, if your income is too high, you do not need to file. From IRS Education Credits : ...MAGI must be $80,000 or less ($160,000 or less for married taxpayers filing jointly). If your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married taxpayers filing jointly), the amount of your credit is reduced. If your MAGI is over $90,000 ($180,000 for married taxpayers filing joint), you can't claim the credit.

2. Correct. IRS Publication 970, Tax Benefits for Education states:

If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions.