Solved

I am so confused over the whole college tax credit for my son! His pre-paid covered his tuition. He got scholarship for dorms. But we still paid for required computer.

Forum|Forum|7 years ago
June 4, 2019
1 reply
0 views

My question is, WHY ON EARTH doesn't Turbo Tax walk you through this a little better? Lol! I expected more for the fee I'm paying. All I want to know is, after my son's QTP and scholarships are applied, are we still able to claim the computer that was a requirement? And does he absolutely have to claim the prepaid plan on his own tax return? If so, that's just ridiculous. I can understand having to claim the scholarship. This is just so confusing. I thought Turbo Tax was going to simplify this for me a little more. Even reading through many other parents' posts on the same subject, I still can not figure it out and I'm regretting not having a profession just do it for me.

TurboTax Deluxe Online

Best answer by MiriamF

It's hard to simplify something as complex as dealing with a QTP. We get many questions about them, and they're not easy to answer.

Go ahead and enter the QTP (make sure your son is listed as the beneficiary in TurboTax), the 1098-T and the scholarships. Enter the computer you had to buy under Other education expenses (for all schools). If, as you said, all is covered except the cost of the computer, then you should be able to get an education credit for the computer.

The 1099-Q and the 1098-T can each be entered by typing "1099-Q" or "1098-T" in the Search box, then selecting Jump to 1099-Q (or 1098-T). After you have entered the 1098-T, on the page headed Here's Your Education Summary, you will see options for Scholarships/Grants (for all schools) where you can enter any scholarships not listed on the 1098-T. The line below that is where you will enter the computer. See the screenshot below for an image.

Note, however, that there is an income limit to who can claim an education credit. Check here for a comparison of education credits and the Tuition and Fees Deduction.

M

MiriamFAnswer

Employee

It's hard to simplify something as complex as dealing with a QTP. We get many questions about them, and they're not easy to answer.

Go ahead and enter the QTP (make sure your son is listed as the beneficiary in TurboTax), the 1098-T and the scholarships. Enter the computer you had to buy under Other education expenses (for all schools). If, as you said, all is covered except the cost of the computer, then you should be able to get an education credit for the computer.

The 1099-Q and the 1098-T can each be entered by typing "1099-Q" or "1098-T" in the Search box, then selecting Jump to 1099-Q (or 1098-T). After you have entered the 1098-T, on the page headed Here's Your Education Summary, you will see options for Scholarships/Grants (for all schools) where you can enter any scholarships not listed on the 1098-T. The line below that is where you will enter the computer. See the screenshot below for an image.

Note, however, that there is an income limit to who can claim an education credit. Check here for a comparison of education credits and the Tuition and Fees Deduction.

C

Celery63Author

So, I should enter the 1099-Q on MY tax return, not my son's, just to clarify? And his school "does not require" reporting. We only have a "representation" of the form 1098-T to go by. Son had a paid internship last summer before entering freshman year this fall, and received a w-2 form so he is filing a return. Is it my understanding that HE needs to list his scholarships as income? The 1099-Q is a Florida prepaid tuition plan. Is he supposed to list that as income as well? The more I read, the more confusing it gets, lol.