1099-q

[Lion]

My first 1099-Q. It was addressed to the student with her SSN. Do I not report it anyplace on her return if her qualified expenses (in short, tuition plus room & board) are less than her distribution? What do I need to watch for in the way of scholarships or refunds that show on her transcript?

And, it's still possible mathematically for Mom to take an education credit, right? I'm setting up the computation as in TTB.

Every client I start has something in their file that's new for them for 2012. I love new things, but not new everything! It's making all my estimated completion times way too optimistic.

[BP.]

My first 1099-Q. It was addressed to the student with her SSN. Do I not report it anyplace on her return if her qualified expenses (in short, tuition plus room & board) are less than her distribution? What do I need to watch for in the way of scholarships or refunds that show on her transcript?

And, it's still possible mathematically for Mom to take an education credit, right? I'm setting up the computation as in TTB.

Add up all expenses qualified for an education credit.
Take applicable credit on Mom's tax return.
Reduce expense total by the amount used towards the educ credit.
Then add in room & board to the remaining expense total.
Compare to the 1099Q distribution.
If the distribution is excess, some prorated part of the earnings will be taxable to the SSN on the 1099.
Yes, do the TTB (12-6) computation.

The wrinkle I have been finding is that CP2000s come out for the earnings, and then a response is needed to show no tax. So, even if not taxable, I have been putting the earnings part on line 21, then a negative entry for the same amount.

Example- I have one for a client's son for 2011. He filed his own little W2, but grandmom took a 1099Q distribution for his tuition. The student's SSN was on the 1099Q and now he has a notice to reply to.

[Lion]

Thanx, BP. That was very clear.