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Tax Experts - Education Credits 1098-T was received with…

Tax Experts - Education Credits 1098-T...
Tax Experts - Education Credits
1098-T was received with 30,792 in box 2 (amount billed). Also, 1099-Q was received in the amount of 30,500 box 1. Which amount should be used in calculation of educational credit?
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Answered in 6 minutes by:
3/12/2018
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
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Experience: 15years with H & R Block. Divisional leader, Instructor
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Because the amount on the 1099Q doesn’t exceed the amount of the student's qualifying expenses, then you don't have to report any of the distribution as income on your tax return. If the distribution did exceed these expenses, then you must report the earnings on the excess as "other income" on your tax return.

When you pay a student’s school expenses with these funds, you cannot claim a tuition deduction or either of the educational tax credits for the same expense. You can only use the amount you paid from other funds. The difference in the tuition and the 1099Q would be the credit amount ($292) to claim.

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,353
Experience: 15years with H & R Block. Divisional leader, Instructor
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