Common questions about education-related adjustments in Lacerte

For tax years 2025:

The One Big Beautiful Bill will be increasing the annual limit and expanding the use of 529 funds. Review IRS Pub. 970 for tax year 2025 changes once available.

Report an education distribution (ESA's and QTP's)

1. Open Screen 14.3, Education Distributions.
2. In the Distribution list, click the payer.
3. Enter 1, 2, or 3 in 1= private 529 program, 2= state 529 program, 3= Coverdell ESA (5).
4. Enter amounts in the Form 1099-Q fields and ESAs Only fields as appropriate.

How do I enter educator expenses?

If the taxpayer or spouse is an eligible educator, enter the amount of expenses qualifying for the Educator Expense adjustment in Screen 24, Adjustments to Income.