1099Q earnings taxable

[Smitty]

How to eliminate tax on earnings on 1099Q. Recipient is not the designated beneficiary.

[Frustrated-in-IL]

You need to provide a lot more info than that.  The recipient can have taxable income, regardless who is the beneficiary.  How about some numbers?

[Smitty]

Gross Distribution:  $2500

Earnings;    $1222.80

Basis:    $1277.20

As said, recipient of 1099Q is not beneficiary.

[Frustrated-in-IL]

What are the qualified expenses?  Is the person claiming the student taking an education tax credit?  Is it AOTC?  How much is the tuition?  How much are books?  Still need more numbers, if you want to do it correctly.

[Smitty]

Don't know any of the information, such as student name, tuition, education expense, etc. Client is not claiming student and does not have any expenses.   Sounds like I may need to call client.

[IRonMaN]

"Sounds like I may need to call client."

That sounds about right.

[Frustrated-in-IL]

Yes, you definitely need a lot more info.

I know the search here is awful, but I have posted in the past a lot on this topic.  And for all the bashing I do on Intuit, they handle this quite well.  You just need to coordinate the 1099Q with the 1098T and the corresponding expenses.  Remember, not all Q expenses qualify for the T.  And yes, you can figure this in the program even if you are not doing the taxes of all parties involved but you do need a full picture as to who is doing what.

[Frustrated-in-IL]

• Yes, you definitely need a lot more info.

I know the search here is awful, but I have posted in the past a lot on this topic.  And for all the bashing I do on Intuit, they handle this quite well.  You just need to coordinate the 1099Q with the 1098T and the corresponding expenses.  Remember, not all Q expenses qualify for the T.  And yes, you can figure this in the program even if you are not doing the taxes of all parties involved but you do need a full picture as to who is doing what.