Another 1098T/1099Q question

[Catherine]

Widowed client has a daughter in college. Daughter received 1098T and 1099Q. Return in question is daughter's.

Amount of scholarship is less than amount in Box 2 of 1098T (and that box has the correct amounts for tuition and fees; it's broken down at the bottom). Remainder of tuition, room, and board is waived due to low income of family plus being local to area. Only thing she needs to pay (besides books) is a relatively small required student services fee, eligible to be paid by 529 plan distribution.

Distribution listed on 1099Q was for amount well under the difference between scholarship and tuition/fees total. The form even has the appropriate breakdown between basis and earnings. So, if I have this right, there is _nothing _ here that is reportable on the 1040. Correct?

However, at the bottom of the 1098T there are two little notes,

Note 1: "Scholarship - College X $100.00"

Note 2: "Refund - 100.00"

Does this change anything?

TIA,

Catherine

[kcjenkins]

I don't believe so. As I am reading that, the gave her $100 then took it back.

[Catherine]

I don't believe so. As I am reading that, the gave her $100 then took it back.

Ah! That makes sense. I was thinking they gave _her_ $100 back. But it still wouldn't have meant that they gave her back 529 plan money -- she put out plenty that she'd earned for various lab fees and books and all kinds of stuff.

Thanks.

Catherine