1099-Q - Turbo tax won't let me enter education expenses due to income

Forum|Forum|3 years ago
April 17, 2022
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I received a 1099-Q from my son's 529 account. I used the funds to reimburse myself for the exact amount tuition payment to his college. I entered the 1099-Q in TurboTax, but the program won't let me enter the education expenses. It says my income is too high. This results in increasing the amount of my federal tax due. I tried deleting everything in Education section and starting over and the same thing happens. Not sure what to do to avoid paying more taxes other than not reporting the 1099-Q which doesn't seem right. Am I missing something or is there something else I should try? Thanks for any help you can give me

Best answer by KrisD15

You do not need to enter the 1099-Q if it was used for education expenses and the expenses are not used again for a credit.

There is a worksheet and Form 8863 which is used to calculate an education credit which uses the information from the 1099-Q.

Since you will not be applying for an education credit, the worksheet and Form 8863 will not be a part of your return.

If scholarships and distributions were more than Tuition, Fees, Books, and supplies, the excess would be claimed as taxable income by the student.

Room and Board expense may also be used to offset a 529 distribution.

KrisD15Answer

You do not need to enter the 1099-Q if it was used for education expenses and the expenses are not used again for a credit.

There is a worksheet and Form 8863 which is used to calculate an education credit which uses the information from the 1099-Q.

Since you will not be applying for an education credit, the worksheet and Form 8863 will not be a part of your return.

If scholarships and distributions were more than Tuition, Fees, Books, and supplies, the excess would be claimed as taxable income by the student.

Room and Board expense may also be used to offset a 529 distribution.

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Hal_Al

Employee

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."