Skip to main content
March 27, 2021
Question

1099-Q and 1098-T

  • March 27, 2021
  • 1 reply
  • 0 views

I have a 529 plan for my daughter in college. I claimed her as dependent in 2019. The 529 has my SSN in the recepient box and my daughter is the designated beneficiary.

For 2020, my daughter has W2 income and I would like her to file own taxes and be able to claim the stimulus check.

How do I address 1099-Q and 1098-T? The 1099-Q is in my name but 1098-T is in my daughter's name. It appears that I cannot enter 1099-Q on my daughter's tax return. Can I enter 1099-Q on my return, claim her education expenses against earnings even though I am not claiming her as a dependent although I have paid for more than 50% of her support?

    1 reply

    Hal_Al
    Employee
    March 27, 2021

    Q.  Can I enter 1099-Q on my return, claim her education expenses against earnings even though I am not claiming her as a dependent?

    Answered at your other post:

    https://ttlc.intuit.com/community/college-education/discussion/re-does-the-student-have-to-be-my-dependent-in-order-for-me-to-file-the-1098-t-form/01/2139998#M40474

     

    But you added an  additional detail  here: "I have paid for more than 50% of her support".

    That probably means she can not file as a non-dependent. 

    There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.

    A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

    1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
    2. He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
    3. He lived with the parent (including temporary absences such as away at school) for more than half the year

    If she does qualify as a dependent under the QC rules, she would have to have less than $4300 of income to qualify under the qualifying relative rules. 

    See full dependent rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Return/INF12139.html