Educational expenses - 1099-Q in grandparent's name but student is dependent on parent's return

Forum|Forum|3 years ago
March 10, 2023
1 reply
21 views

Grandparent opened a 529 for a granddaughter. This year granddaughter has received a 1098-T (started college). Granddaughter is claimed by parents. The 1099-Q form for the distributions was issued in the grandparent's name and social security number. I do the grandparent's tax return but not the parents.

Is there anything I have to report on grandparent's tax return regarding the distribution made in her social security number to show it is non-taxable to grandparent?

And do I tell her to send a copy of the 1099-Q to the parents because they must show that State plan payout against educational expenses on their returns?

ProSeries Professional

This topic has been closed for replies.

Best answer by mm1

So you both say I enter the 1099-Q on grandparent's return and to use expenses against it on her return? Then make sure the parents when they file don't use those same expenses somehow? The parent's don't report the 1099-Q on their return at all, just do not take the expense? Grandparent can take other expenses like room and board, books against the 1099-Q income I am gathering here.

Just-Lisa-Now-

Intuit Community Champion

Fill out the 1099Q worksheet, theres a button at the bottom to input the "Other Student Qualified Education Expenses" that the funds were used for.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

F

Frustrated-in-IL

Level 8

It is very likely grandparents will have taxable income if parents claim credit, depending on amount of qualified expenses paid and amount withdrawn on Q. As mentioned, you need to fill out the worksheets. That means you need to have your client get those qualifying expenses. Also, many schools are still having hissy fit about having to put an amount in Box 1, and are putting everything received in Box 1, even if it isn’t a qualifying expense. So you need to make sure some expenses, like room and board, aren’t being double counted since they don’t count for the 1098T but do for the Q.

M

mm1AuthorAnswer

Level 5

So you both say I enter the 1099-Q on grandparent's return and to use expenses against it on her return? Then make sure the parents when they file don't use those same expenses somehow? The parent's don't report the 1099-Q on their return at all, just do not take the expense? Grandparent can take other expenses like room and board, books against the 1099-Q income I am gathering here.

Sign up

Login with SSO

Let's get you signed in

Login with SSO