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April 11, 2022
Question

Why is my gross adjusted income over $7,000 when my personal income using 1099-NEC is only $2,000 and my 529 school misc (1099-Q) income is $10,000 which isn't taxable.

  • April 11, 2022
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1 reply

April 11, 2022

It is possible that you have income being reported from your 1099-Q form or your form 1098-T. You could have income from your form 1098-T if your scholarship income (box 5) is more than your education expenses (box 1). 

 

On your form 1099-Q, you need to make sure you reported all of your education expenses, including room and board, when you entered your form 1098-T. The income reported on your form 1099-Q is not taxable to the extent it is used for qualifying education expenses, which includes room and board, but you need to enter those expenses in the 1098-T section to get credit for them.

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