cpabsd Posted April 2, 2008 Report Posted April 2, 2008 A client received a 1099-Q for distribution for amounts used for daughter's tuition. There was no education credit claimed as the client is above the AGI limits. Is it correct that there is no reporting of this on the tax return? The education costs exceed the amount of the distribution. Thanks for guidance on this issue. Quote
LindaB Posted April 2, 2008 Report Posted April 2, 2008 A client received a 1099-Q for distribution for amounts used for daughter's tuition. There was no education credit claimed as the client is above the AGI limits. Is it correct that there is no reporting of this on the tax return? The education costs exceed the amount of the distribution. Thanks for guidance on this issue. Did the student receive any tax-free financial aid, like scholarships or Pell grants? The total qualified education expenses have to be reduced by other tax-free assistance before you can tell if any of the 1099-Q distribution is taxable. Would they qualify for the Tuition and Fees Deduction, as the AGI limits are higher for that? Quote
cpabsd Posted April 2, 2008 Author Report Posted April 2, 2008 No, there were no pell grants or the like and the AGI limitations are still there for tuition and fees deduction. Mom makes good money and files Head of Household. Quote
LindaB Posted April 3, 2008 Report Posted April 3, 2008 It looks to me like it is not reported anywhere if the distribution is less than qualified expenses, as you said it is in your case. Quote
joanmcq Posted April 3, 2008 Report Posted April 3, 2008 Lots more expenses qualify for 529 distributions too; like books, room & board...just about anything educational. If the distribution was taken out in clients name rather than the daughter's she could get a nastygram wanting an explaination. Quote
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