1099q

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • spanel
    Senior Member
    • Oct 2008
    • 845

    #1

    1099q

    Gross distribution $3500
    Earnings $1000
    Basis $2500

    College expenses are $3500 from 1098T

    So none of my earnings on the 1099Q are taxable correct?
    How much goes on an 8863? $2500 since I have a $1000 tax benefit?

    Thanks

    Chris
  • Maude Lebowski
    Member
    • Jun 2015
    • 75

    #2
    Zero. The TP already got the tax benefit because the $3500 came from a 529 Plan (or QTP or Coverdell).

    Comment

    • New York Enrolled Agent
      Senior Member
      • Nov 2006
      • 1530

      #3
      Originally posted by Maude Lebowski
      Zero. The TP already got the tax benefit because the $3500 came from a 529 Plan (or QTP or Coverdell).
      I'm not sure it's as simple as that. The 529 and the AOC can be coordinated. The original poster should look at Pub 970, Chapter 8 for a discussion of the coordination.

      Comment

      • RWG1950
        Senior Member
        • Nov 2017
        • 458

        #4
        TTB (pp 12-6, 12-7) explains this how this works and also the coordination between QTP withdrawals and education credits.

        Comment

        • ATSMAN
          Senior Member
          • Jul 2013
          • 2415

          #5
          I typically recommend that they use 1099-Q distributions pay for room and board (including off campus living, subject to limitations) and other expenses that can not be claimed under AOC or LLC. It works out beautifully!
          Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

          Comment

          Working...