Why are the Adjusted Qualified Higher Education Expenses on my 1099-Q worksheet being reduced by $10,000 from the value on my 1098-T?

Forum|Forum|6 years ago
June 5, 2019
1 reply
0 views

No text available

Anita01

Employee

When you enter the 1098-T, you are asked how much of the education expenses you want to allocate to taking education credits. You can only use expenses for taking an education credit or making your 199-Q nontaxable. You ca't use the same expenses for both. Possibly you entered entered $10,000, or left it blank to default to all expenses so that was allocated to education credits.

to change it,enter the words education expenses in Search and click the Jump To.

harterpk

I see the same 10,000 difference. My tuition expenses for my daughter are higher than the 529 distribution, but I'm being taxed on part of the distribution.

For example, the 1098-T shows $25,000 in box 1, and that's reflected in the form in TurboTax. However, while the 1099-Q worksheet in TurboTax shows the correct distribution information, e.g. $23,000, down below it shows $15,000 on line 2b under QTB Computation of Taxable Distribution, which results in including some of my supposedly tax free distribution in my income.

I don't see any question about "how much of the education expenses you want to allocate to taking education credits." when I enter the 1098-T.

harterpk

Searched again, and managed to find to question about "how much of the education expenses you want to allocate to taking education credits." It's not in the 1098-T form. It's actually under the "Education Information" section at the bottom of the page "Here's your Education Summary."

This actually seems to make some sense now.....