Skip to main content
March 20, 2023
Question

1098T

  • March 20, 2023
  • 2 replies
  • 0 views

When the student is recipient of 529 plan, R&B can be deducted. Can meal plan charges be deducted also? Thanks

 

    2 replies

    March 20, 2023

    Yes.  A "meal plan" is a qualified expense and can be paid for using 529 Plan funds.

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    Hal_Al
    Employee
    March 20, 2023

       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. 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. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip! 

    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. You must determine the taxability of any distribution." 

     

    I mention this alternative because the Turbotax interview can be a little tricky.