Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

My daughter received a 1098T($498.00) and 1099Q($1,920.10)-Gross

Distribution, ($79.90)-Earnings, & ($2,000.00)-Basis. What...
My daughter received a 1098T($498.00) and 1099Q($1,920.10)-Gross Distribution, ($79.90)-Earnings, & ($2,000.00)-Basis. What dollar amount do I need to put on Line 21
of her 1040 form as other income. She earned $11,103.61 on W-2. Would a form 8863 or 8917 be beneficial for her? Please help...
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
2/23/2010
TaxMomNJ
TaxMomNJ, Senior Tax Advisor
Category: Tax
Satisfied Customers: 245
Experience: 7 years experience with tax preparation company, over 500 hours of tax courses taken
Verified

Yamom,

 

How old is your daughter? What year of college is she in? How much of the $1,920 did she actually use for college?

Ask Your Own Tax Question
Customer reply replied 7 years ago
My daughter is 21 years old. Only $498.00 was used for college. She will graduate in May of this year with an Associates in Early Child Care. She graduated High School in 2006.

I am going to opt out and let an expert with a better grasp on 1099-Q's help you with this one.



Edited by TaxMomNJ on 2/23/2010 at 1:54 AM EST
Ask Your Own Tax Question
Customer reply replied 7 years ago

OK, Thanks anyway. Just have them E-mail an answer if possible.
Customer reply replied 7 years ago
Relist: I still need help.
I did not receive an answer to my question yet. The expert decided to pass and let someone else answer the question who had better knowledge on 1099Q and 1098T.
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,619
Experience: Taxes, Immigration, Labor Relations
Verified

The form 1099-Q reports distributions from qualified tuition programs under section 529.

In your situation - $1,920.10 - Gross Distribution - is less than original contribution - $2,000.00 - Basis.

 

Because contributions to such programs are not deduced from taxable income - the distribution of the basis is not taxable income - and there is nothing to report on the line 21.

 

According to your information - the form 1098-T reports tuition expenses - $498. However before you would be eligible to claim educational credit - we need to be sure that the distribution from qualified tuition programs $1,920 was used for qualified educational expenses.

From your information - it is not clear how these money were used.

 

Ask Your Own Tax Question
Customer reply replied 7 years ago
Out of the $1,920.10 only $498.00 was used to pay for college classes. The rest of the money was originally deposit into a savings account.

Your original contribution was from after-tax money - so - there is no earnings and there is no taxable income.

 

Because your educational expenses were paid with the distribution from the qualified tuition account - same expenses may not be used to claim an educational credit.

 

Let me know if you need any help.

 

Ask Your Own Tax Question
Customer reply replied 7 years ago
So, on line 21 of her 1040 form I do not need to report anything. I just need to keep the 1098T and 1099Q for my records. And I should not worry about taking the Hope credit
or Opportunity credit...Is this right.

So, on line 21 of her 1040 form I do not need to report anything.

Yes - that is correct - as long as there is no earnings - there is no taxable income regardless how the distribution is used.

 

I just need to keep the 1098T and 1099Q for my records.

Yes - the form 1099Q provides you a proof that there is no earnings on that account.

 

And I should not worry about taking the Hope credit or Opportunity credit.

Yes - as long as you had a distribution from the qualified tuition account - and that amount was not fully used to pay qualified educational expenses - you may not use same expenses to claim any other educational credits.

 

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,619
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now

Some corrections...

Please take a look at IRS publication 970 page 68 - http://www.irs.gov/pub/irs-pdf/p970.pdf

Coordination With American Opportunity, Hope, and Lifetime Learning Credits
An American opportunity, Hope, or lifetime learning credit (education credit) can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. This means that after the beneficiary reduces qualified education expenses by tax-free educational assistance, he or she must further reduce them by the expenses taken into account in determining the credit.

 

So you may use your tuition expenses - $498 for any educational credit - but in this case part of the distribution from a QTP might be taxable - however because there is no gain in your account - nothing would be taxable for you.

Please see example on the same page.

Sorry for confusion.

Let me know if you need any help with reporting.

 

Ask Your Own Tax Question
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,619
30,619 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Cannot find my 2018 form ssa-1099 benefits statement. how to
cannot find my 2018 form ssa-1099 benefits statement. how to get another? … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
79 satisfied customers
Cannot find my 2018 form ssa-1099 benefits statement. how to
cannot find my 2018 form ssa-1099 benefits statement. how to get another? … read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
60 satisfied customers
What are the forms for reporting Rental Income to the IRS on
What are the forms for reporting Rental Income to the IRS on foreign properties - we collect each month? Is this filed separately from our personal returns?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
WHAT IS 73-10? California. IRS in my credit report
WHAT IS 73-10? JA: What state are you in? It matters because laws vary by location. Customer: california JA: Has anything been filed or reported? Customer: IRS in my credit report JA: Anything else yo… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,777 satisfied customers
Is there a form to file with the IRS for tax periods that
Is there a form to file with the IRS for tax periods that have ran past the statute of limitations from the date of assessment … read more
Lev
Lev
Tax Advisor
30,619 satisfied customers
Can I get a copy of 2015 taxes. I need copy of W-2 forms.
Can I get a copy of 2015 taxes JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: I need copy of W-2 forms JA: Is there anything else the Accountant shou… read more
abci168
abci168
Principal
27 satisfied customers
FICA payroll employer tax withholding tax forms W-4 and W-2
FICA payroll employer tax withholding tax forms W-4 and W-2 forms. The accountant for the man I worked for from1976-1984 did not provide me with W-4 forms to complete and return to him or W-2 forms to… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Tax law.FICA Tax law. W-4 and W-2 payroll tax withholding
tax law.FICA Tax law. W-4 and W-2 payroll tax withholding from wages and salaries.gross pay and take home pay. number of hours measured direct work assigned by W-4 and W-2 forms. for Medicare eligibil… read more
Lev
Lev
Tax Advisor
30,619 satisfied customers
I have a client who's child goes to private school. The
Hi- I have a client who's child goes to private school. The school district is reimbursing them the tuition for the private school and also legal fees that they incurred to get the district to pay for… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If I get a 1099-Q and I am not the designated beneficiary,
If I get a 1099-Q and I am not the designated beneficiary, but I pay qualified education expenses for my dependent, is this 1099-Q taxable? Please reference an IRS code section or part of a publicatio… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,777 satisfied customers
I need help for W-2 forms for auto loan asap. File w-2's. I
i need help for W-2 forms for auto loan asap JA: The Expert will know how to help. Please tell me more, so we can help you best. Customer: file w-2's JA: Is there anything else important you think the… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,267 satisfied customers
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2 FROM HER EMPLOYER WITH A TYPO IN THE SOCIAL SECURITY NUMBER. TO DATE THE EMPLOYER HAS NOT PROVIDED A "CORRECTED" FORM W-2. IS THERE AN IRS "… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,267 satisfied customers
Form 1099-DIv show there is a nondividend distribution on
Form 1099-DIv show there is a nondividend distribution on box 3. will this amount reduce the stock basis?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,777 satisfied customers
IRS said the Roth IRA reported distribution was not held for
IRS said the Roth IRA reported distribution was not held for at least 5 years. It was. I was told I needed to send in a 8606 with my 2014 tax return. How do I go about doing that so I don't own the $1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
What do i show to prove my education credit, got a letter
got a letter saying they are auditing my education and american opportunity credit … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I am trying to claim the American Opportunity Credit for
I am trying to claim the American Opportunity Credit for last year since I didn't remember to do it until now, but am very confused by the process. Can you help? … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
685 satisfied customers
1099-q? So - for 2015 I got a 1099-q with the 'corrected'
So - for 2015 I got a 1099-q with the 'corrected' box checked: they never sent an erroneous one prior. It had Gross Distribution of $0.00 and blank earnings and basis box … read more
Brian Michels
Brian Michels
Partner, CPA
Bachelors of Business Administration
154 satisfied customers
EDUCATION CREDIT: Can you claim education credit for
EDUCATION CREDIT: Can you claim education credit for dependent study Canada (at University of Toronto). Taxpayer son study at UFT. he is sophomore year… read more
Jonathan Tierney
Jonathan Tierney
MBA
294 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x