TT not allowing me to enter 1098-T. Amount is $0 and greyed out -stating information has already been provided.

Forum|Forum|3 years ago
April 9, 2023
1 reply
0 views

I received 22k from 529 accounts which i was able to enter as 1099-Q. That has significantly impacted my Refund amount. However, i did not panic since i knew I am yet to enter tuition 25k expenses using 1098-T.

However, i am not able to enter tuition as TT complains "Your modified adjusted gross income of $xxx,xxx exceeds the maximum limit of $180,000., However you should continue and enter your education expenses to avoid paying taxes or ESA and QTP...."

T

TribhovanAuthor

Employee

based on google, i deleted 1099-Q and entered 1098-t. Then i went back and entered 1099-q, seems to have fixed the problem. This dents my trust on turbo tax.

I still have fundamental question. Why is qualified distribution from my 529 reducing my tax refund amount? In simple words, I took 22k from 529 but i paid 25k for tuition etc, for which i have receipts. Why did it drop my refund amount?

Some private tax websites recommend not to report 1099-q and 1098-t at all in case no fund were used for non-qualified purpose. Any insight?

Critter-3

Some private tax websites recommend not to report 1099-q and 1098-t at all in case no fund were used for non-qualified purpose. Any insight?

If you have no tuition expenses above what was paid for with he 1099-Q funds then there is no reason to enter either form in the TT program or on a tax return since there would be no credit produced and the IRS doens't require it.

T

TribhovanAuthor

Employee

this is still not clear to me. I have entered 1099-Q (20k) and also 1098-T (24k). Since my expenses were greater than the distribution, i should not be paying any additional taxes. However, adding both these forms (1099-Q and 1098-T) significantly reduce my refund amount. Will i get in trouble if i just delete these two forms?

When i start filing 1098-T, I get below warning from TT, but it allows me to proceed.

""Based on what you've entered so far, you cant claim tuition and other fees because your income is too high.

Your MAGI of $xxxx exceeds the maximum limit of $180,000. However, you should select "Continue" and enter your education expenses to avoid paying tax on your ESA or QTP.""