Question

1099Q and 1098T

Forum|Forum|6 years ago
February 17, 2020
1 reply
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I used 529 savings to pay for my daughter's tuition. I received the 1099-Q, because funds were disbursed directly to me (I paid the school). she received a 1098-T. I no longer claim her as a dependent, she files her own taxes. Turbo Tax is saying she is eligible for an education credit. Even though she did not actually pay anything? And if so... how does that affect what I report? We're trying to sync both our tax returns. THANKS

M

mglauner

If your daughter is filing her own return and is not your Dependent, she can enter both the 1098-T and 1099-Q on her return and be eligible for an Education Credit.

You would not enter either on your return.

If the 529 funds were fully used for Qualified Education Expenses, neither of you needs to report the 1099-Q in your return.

If there is taxable income on the 1099-Q (or excess Scholarships/Grant), she would report it on her return.

Click this link for a detailed discussion on Who Claims the Students Education Expenses.