I paid cash for books, supplies and equipment, plus room and board, but TurboTax states, "I can deduct...IF if paid using QUALFIED EDUCATION SAVINGS"! Why not cash?

Forum|Forum|11 months ago
April 15, 2025
1 reply
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does this mean if I'm paying my way through college with cash, I CANNOT deduct out of pocket school expenses?? That seems crazy

TurboTax Deluxe Online

KrisD15

I think the program is addressing Form 1099-Q.

Did you enter Form 1099-Q? That "Qualified Education Savings Distribution" can be offset by expenses such as room and board, as well as tuition, books and supplies.

To apply for a credit, enter Form 1098-T and the education expenses such as tuition, books and supplies that you paid with cash.

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Hal_Al

Employee

Provide the following info for more specific help:

Are you the student or parent.
Is the student the parent's dependent.
Box 1 of the 1098-T
box 5 of the 1098-T
Any other scholarships not shown in box 5
Does box 5 include any of the 529/ESA plan payments (it should not)
Is any of the Scholarship restricted; i.e. it must be used for tuition
Box 1 of the 1099-Q
Box 2 of the 1099-Q
Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)?
Room & board paid. If student lives off campus, what is school's R&B on campus charge. If he lives at home, the school’s R&B “allowance for cost of attendance” for student living with parents.
Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
How much taxable income does the student have, from what sources
Are you trying to claim the tuition credit (are you eligible)?
Is the student an undergrad or grad student?
Is the student a degree candidate attending school half time or more?