Pulling Hair Out over 1099-Q & Taxes

Parent Cafe
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<p>Using Turbo Tax and attempting to do my son's taxes but TT not clear on where some of the below info goes! </p>

<ul>
<li>He's a full-time student</li>
<li>He was claimed as a dependent on my taxes for 2010.</li>
<li>He had earned income of just over $6,800 for 2010 working two part-time jobs.</li>
<li>He attends U of Florida and lives off campus (we live in a diff city in FL.)</li>
<li>He received a 1098T & a 1099Q (FL College Prepaid Acct)</li>
</ul>

<p>1098T= $4100 (box 1) $3264 (box 5) for State Bright Futures Scholarship
1099Q= $3248 (box 1) $981 (box 2) $2267 (box 3) FL College Prepaid Account</p>

<p>My question is....does he have to report any of the 1099Q distribution of $3248 or the $981 earnings on his taxes? Also, is he taxed on the remaining money from his College Prepaid Account & Bright Futures Scholarship after all tuition & fees are paid or can he use his off campus rent expense as a qualified expense?</p>

<p>The Bright Futures Scholarship distribution (on 1099T box 5) paid for most of his tuition & fee expenses except for $836 with the FL Prepaid paying for the remainder. Both distributions are paid directly to the school with any remaining balance returned to my son after all tuition & fees are paid for.</p>

<p>After all tuition & fees were paid, this left him with approx $2400. If I'm not mistaken, his off campus rent qualify's as a college expense for which the remaining $2400 can be applied.</p>

<p>Please help!</p>

2

<p>Forgot to add that not only does he have rent but also book expenses to apply.</p>

3

<p>Follow the instructions that TT gives you. TT will put the numbers in the proper places or NOT. If you insist in ignoring the instructions and want to place the numbers somewhere from habit, you are defeating TT purpose.</p>

<p>Generally you do not have to do anything for these 1099 and 1098s because the money already has been taxed and any gains is been waived (like 529). IF TT did not ask, about these forms, then Don’t tell. The tax programs are very complete, precise and accurate. </p>

<p>Relax.
If you want to pay, extra moneys, I’m sure someone will take the money. :)</p>

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<p>uf4ever…feel for you… i have done my son’s in the past…but i gave up this time, had income from 2 jobs, byrd scholarship, school scholarship and our state pact plan…like you i couldnt figure it out…took to my accountant to do… maybe you have a h&r block nearby??</p>

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<p>Any scholarship money is taxable over the amount of legit expenses (room and board are not legit). All income is taxable. My kid had $6K in income and a bit less than $2000 more in scholarships than actual tuition, fees and books, so that meant reporting the about $8K as income.</p>

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<p>KKmama - the OP is asking about 529 distributions, not scholarship money.</p>