Q. Is there a place where I can enter my college daughter's rooming fees for the year?
A. Simple answer: No. R & B (Room & Board and other living expenses) are not qualified educational expenses (QEE). So, TurboTax (TT) does not provide an upfront place to enter R&B.
R&B are an eligible expenses for a 529, QTP or ESA distribution. So, if you first enter a 1099-Q, for such a distribution, TT will then provide an entry point for R&B, later in the educational expenses (1098-T) section. To get the screen to enter Room & Board, answer yes when asked if you have book expenses.
You can just not report the 1099-Q, at all, if 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!
References:
- 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."
- IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.
- "IRS Publication 970, Tax Benefits for Education states: If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form."
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