Education credits

Forum|Forum|3 years ago
February 21, 2023
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My daughter's college expenses are paid for with our state 529. I paid $4000 for her tuition out of my own checking account for the 2,500 combined educational tax credits. Where do I enter this in TT2022?

Hal_Al

Employee

For the credit,

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

--Education Expenses and Scholarships

for the 529 plan distribution, you can just not report the 1099-Q, at all, since 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."

If you do decide to enter the 1099-Q, enter it before you enter the 1098-T and the educational expenses section of TT.