Education

Hello everyone,Our Son received a full scholarship in 2024 which paid for everything including his room and board.  Since his entire college bill was covered by his scholarships; our state 529 plan would not make a payment to his school directly as they had done in the past.  Instead, they sent the reimbursement check to me (the parent) and the Form 1099-Q was also issued to my social security number.  Under my Son’s Turbo Tax (“TT”), I chose that he did NOT receive any Form 1099-Q (since 1099-Q was issued to me).  Under the parents’ TT, I chose that I was the recipient of Form 1099-Q and the 529 plan distributions were used to pay for the education expenses of my student.  Also, under our TT’s education expense input forms, I entered that $20k of the scholarship funds were used to pay for room and board.My questions are as follows: 1-Is it correct to answer in TT that the 529 plan distributions were used to pay for the education expenses of the student even th

We have a complicated scenario.  My son has a lot of scholarship money and also made 529 withdrawals in 2024.  The rough numbers from his 1098-T are box 1 $14,000 and box 5 $36,000.  For some reason, he was led to believe that he could take 529 money out equivalent to his scholarship amounts without penalty, so he also took about $36,000 out of his 529.  He knew he would pay taxes on the $36,000 529 money but thought there would be no penalty.  (He does not need this extra 529 money for his education due to all of his scholarships and thought it would be wise to take it out while he is not making much money vs. when he is in a higher tax bracket in a few years). Now, it appears he is paying taxes on both the scholarship money, plus the 529 money, plus the 10% penalty from the 529, plus another penalty for not paying estimated taxes all year.  In addition, it appears he will be taxed in my tax bracket because they are asking him for my 1040 information.&nbs

In this years software I can't find any 529 deduction option in the state return. Anyone else having this issue?

Re: Form IT-272, TurboTax Premier says:         New York offers tax breaks only for undergraduate college tuition.        Was <name> an undergraduate student in 2024? Yes/No So if I get a form 1098-T from a qualified college for a college credit course and my dependent is in high school full time, does NY allow a deduction? Can I answer Yes to the above question? Thanks

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I had an excess distribution from my son's Michigan Education Savings Program account.  The instructions for Line 8 of MI's Schedule 1 say in part: "Add, to the extent not included in AGI, the amount of money withdrawn in the tax year from ... [an MESP account] ... if the withdrawal was not a qualified withdrawal ... You may first exclude any amount that represents a return of contributions for which no deduction was claimed in any prior tax year." If I understand correctly, Michigan taxes neither contributions nor earnings in its 529 plan.  I would expect, then, any excess distribution attributable to the basis on my 1099-Q needs to be added back in the year in which it was taken, and that's what the above instructions are telling me to do.  (The excess distribution is in AGI, which is the starting point for the MI return, so that's already handled.) I've completed the interview in TurboTax and am confident that the numbers TurboTax enters on my federal r

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Where can I add that for tax breaks?

Aside from room and board, all of her expenses were for tuition, fees, books and supplies. How do we show this? Right now it shows her having to pay over $8000 in taxes on money that was used to pay for school expenses.

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Our son took classes in spring, summer, and fall semesters in 2024, all at the same university.  For spring semester we (parents) paid the school $9,000 from our checking account.  For summer semester we also paid the school $7,000 from our checking account.  For fall semester we issued an $11,000 payment directly to the school from our son's 529 savings account (I am the owner, he is the beneficiary). Our son received a 1099-Q from the 529 plan for $11,000.  My wife and I reimbursed ourselves from the 529 account so we received a 1099-Q from the 529 plan as well; however, ours was for $25,000 because I inadvertently reimbursed ourselves twice for the $9,000 payment.  (Not very smooth on my part.)  This results in an excess distribution.   The excess distribution is made even greater by the fact that our spring semester payment was drawn from our checking account in late December, 2023 but not received by the institution until earl

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Hi,I’m a graduate student whose tuition is paid directly by the school, I don’t receive the funds in my bank account, and I don’t personally pay the tuition. I receive a stipend as a full-time student, and my program is covered by the school, typically through TA or research assistant responsibilities.Do I still need to report the 1098-T form when filing my taxes?Thank you!

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My child resides in NJ (I claim them as a dependent and I live in NJ).  They attend a college in NY full time.  Their income on their W2 (from a job in the summer) was $5665 (no federal or state tax withholdings).  They received scholarships that covered all of their tuition and also covered their room and board, which was $7990.  On the 1098-T, Box 5 - Box 1 equals $9557.  They have $814 in "other educational expenses".My questions are:Do they need to file a federal tax return if the amount is under the federal standard deduction?Do they need to file a NJ state tax return?Since I don't receive an education credit for them, would it make more sense for them to file separately (as a non-dependent)?  Is seems like we would save around $250, if I removed them as a dependent and they filed separately.  I just don't understand the implications of doing that (are they now a resident of NY, do they have to pay NY tax AND NJ tax then?)Thanks!

I am prompted with: "Enter the amount of contribution you made to a Michigan Education Savings Program....""Amount contributed to MESP, MI 529 Advisor Plan and/or Michigan ABLE Account" with a box to enter my amount.  I contributed $21,000 split between 2 accounts with no withdrawals.  When I enter the amount I contributed, a box pops up to say that it should be less than or equal to $10,000.  I am aware that the "Michigan taxpayers may also be eligible for a Michigan income tax deduction on contributions made to MESP up to $10,000 for married couples filing jointly". The issue I have is that the box will let me enter $21,000 or $10,000 to drastically effect my return.  It asks me how much did I contribute? Well I contributed $21,000.  Shouldn't the software be asking this in a different way if I'm not supposed to enter my actual contribution?

My dependent children reside in NJ (since I am claiming them and I reside in NJ).I have 2 different college students attending colleges in NY and PA.  They both have received scholarships that exceed the qualified educational costs and have paid for all (in one case) and a portion (in the other case) of room and board.My question is: Which state am I responsible for paying state taxes on for the taxable scholarship money (used for room and board)?  If you could clarify the situations for PA and NY respectively, that would be appreciated!Thanks!

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The program is trying to save me money but last year I only paid for half the year. American Opportunity Tax Credit can only be applied four times lifetime and I would like to save it for when I have more expenses within a year.

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