1099-Q and 1098-T

Forum|Forum|2 years ago
April 15, 2023
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I received a 1099-Q for my final Bachelors Semester during Spring 2022 and a 1098-T for my first Medical Graduate program Semester during Fall 2022.

This is the first time I am trying to use TT for filing my taxes.

1098-Q:

Box1: 6250.39

Box2: 1879.39

Box3: 4371.00

1099-T:

Box1: 70833.33

Box5: 5556.00

Box7: Amount in Box1 includes amounts for an academic period beginning Jan-Mar2023 - Checked.

I also incurred expenses for my computer etc.

My parents paid all my expenses and tuition fee for Fall Semester and additional expenses for Spring semester such as Room, books etc. The QEE was used for my Bachelors Tuition only.

How should I report 1099-Q and 1098-T?

Should my parents include 1098T in their tax reporting?

Who should report 1099-Q and 1098-T?

Not A Product Question

Hal_Al

Employee

Q. How should I report 1099-Q and 1098-T?

A. You should not report them, at all.

Q. Should my parents include 1098T in their tax reporting?

A. Yes, but only if they are claiming you as a dependent. Paying your tuition, alone, does not get them the tuition credit.

Q. Who should report 1099-Q and 1098-T?

A. Nobody should report the 1099-Q*, since it was fully covered by expenses. Med school expenses can also be counted for the 1099-Q, not just the undergrad costs.

The 1098-T (and tuition credit) goes with your dependency. If you are not a dependent, you can claim the 1098-T, if you are otherwise eligible. Reply back, with more details if this is the case. What is your age as of 12-31-22. What income do you have. Did your parents already claim the AOTC four times in the past, on your ed. Was undergrad tuition actually paid in 2022. Did you get a 1098-T from the undergrad school.

*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!

References:

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."
IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.