1099Q Is in childs name is it proper to claim it on parents tax return?

[shf1957]

I PROMISE this is the last time I will ask a question about a 1099Q..LOL   1099Q came in the childs name for the childs college expenses. Parents are claiming the children.   Parents also are claiming the college credit.  Issue is the one child's college cost on the 1098T is roughly the same as the earnings on the 1099Q.  The other child's college cost is alot more than the earnings on the 1098T.   Is the program picking up on this right or is there something else I am to do.  I do not want to double dip.   MAIN QUESTION IS: Am I to subtract the earnings from the1099Q from the box 1 of the 1098T ( tuition expenses) and use that figure instead of what is in that box?   Please help and let me know.

[Just-Lisa-Now-]

I use the 1099Q worksheet, you can link to the student information worksheet at the bottom of that entry form.

[shf1957]

I filled that in with the exact figures of what was on the form.. but it didn't subtact the amount of earnings from the 1099Q   I can remember someone saying if you get one item (the earnings from the 1099Q) and don't count for it.. you'd be double dipping.   I just don't want to do this wrong.

[Frustrated-in-IL]

Each child's 1099Q and 1098T are dealt with on an individual basis.  If there is one 1099Q for child A with earnings showing a distribution approximating the qualified expenses for tax credit purposes, and the parents are taking the tax credit, then child A is going to end up with taxable income.  Do NOT net anything from the Q form against the 1098T amounts.  That is 100% incorrect.

For all the bad stuff I say about ProSeries, I do need to give them credit on the education stuff.  If you complete the Q worksheets and the education worksheets PROPERLY (that is the key), and link them together, the program computes the tax perfectly and tells you exactly who will be taxed.  In the circumstances you described, it will be the child.

[Frustrated-in-IL]

The other thing to keep in mind is many (most?) schools are putting the wrong amount in Box 1.  They had a hissy fit a few years back when IRS told them they could not use Box 2.  So they they have been throwing EVERYTHING paid in Box 1, claiming they don't know how much of the payments received were for tuition (a qualifying expense of the tax credit) and how much was for room and board (not a qualifying expense for the tax credit but a qualifying expense for the Q form).  

If you know for certain more than $4000 was paid for tuition and there is NO Q form, you are good to go for the credit.  But if there is a Q form, you really need to get those amounts correct, and get them in the right bucket.  Have the student print out their student account transactions to get the correct amount paid for Box 1.  The remaining amounts paid on the student account (room and board, etc.) can be used to properly determine taxes on the Q, if any.  In the OP, the Q amount and the qualifying expenses were close.  But if the qualifying expenses far exceed the Q amounts, there may not be any tax.

[Just-Lisa-Now-]

I havent done one in a few years, but you need to scroll down the student info worksheet, looks like part VIII to make the entries for the 1099Q amount

[Harvey]

I trust the 1099 Q question is.

If I'm inputting the information from 1098 and 1099 Q on the Parents return and the dependent recipient (child) has taxable income how do you input the taxable amount to the child's return.