Where do I enter room and board expenses for college? The 1098-T section only asks about tuition. 1099-Q section is no help either. (2024)

FAQs

Where do I enter room and board expenses for college? The 1098-T section only asks about tuition. 1099-Q section is no help either.? ›

To get the screen to enter Room & Board, answer yes when asked if you have book expenses, in the 1098-T and educational expenses section. For the R&B entry box to appear, you must have entered the 1099-Q prior, so TT knows why you need to enter R&B.

Amounts on Form 1099-Q only need to be reported if the distributions were non-qualified, which means they were spent on something other than tuition, fees, room and board and required expenses. That means that most people do not need to report their 529 distributions on their tax return.

Qualifying expenses include what you pay in tuition and mandatory enrollment fees to attend any accredited public or private institution above the high school level. You cannot take a deduction for: Room and board, optional fees (such as for student health insurance), transportation, or other similar personal expenses.

Housing payments for room & board and meals are not qualified expenses and not reportable on Form 1098-T per Federal tax laws. Please see "Qualified Education Expenses" at the IRS Tax Benefits for Education Information Center to clarify room and board expenses as they relate to educational tax credits.

Expenses that Do Not Qualify

Even if you pay the following expenses to enroll or attend the school, the following are not qualified education expenses: Room and board. Insurance. Medical expenses (including student health fees)

Room and board usually isn't considered a qualified education expense for the purpose of education credits. The one exception is if room and board was paid for with a Coverdell ESA or 529 plan distribution. In that case, the cost can be deducted from the taxable part of the plan's distribution.

The full amount of earnings as reported on Form 1099-Q is taxable if: You're the designated beneficiary. You didn't use the funds for your own qualified education expenses.

Be pursuing a degree or other recognized education credential. Have qualified education expenses at an eligible educational institution. Be enrolled at least half time for at least one academic period* beginning in the tax year. Not have finished the first four years of higher education at the beginning of the tax year.

Qualified expenses include tuition, any fees that are required for enrollment, and course materials required for a student to be enrolled at or attend an eligible educational institution.

Room and board is a phrase describing a situation in which, in exchange for money, labour or other considerations, a person is provided with a place to live as well as meals on a comprehensive basis.

What if tuition and fees are not entered on 1098-T? ›

If there are qualified expenses not included on Form 1098-T, the preparer may include them on Form 8863 and also include a preparer note in the return notating the additional expenses. The taxpayer will need to provide the preparer with copies of receipts or other proof of the expenses.

Box 4 shows any adjustments that your school made for a prior year's qualified expenses. If you have an amount showing in Box 4 of your 1098-T, it may reduce your allowable education tax credit claimed for the prior year. That, in turn, may result in an increased tax liability for the current tax year.

First, box 1 includes payments received from all sources, including financial aid and third-party sponsors. Second, it includes only payments toward qualified tuition and related expenses. Although you may have paid for housing, meal plans and other charges, those payments cannot be included in box 1.

You can have the 529 plan send a check directly to your school to cover on-campus room and board, including meal plans. In addition, students or their parents can pay for room and board out of pocket and then get reimbursed by the plan. For students living off-campus, using 529 funds is also an option.

Qualified education expenses for IRA withdrawal are the amounts paid for tuition, books, education-related supplies and equipment, as well as room and board.

Qualified expenses include tuition, fees, books, supplies, and equipment required for enrollment at an eligible school; expenses for room and board if the student is enrolled at least half-time; expenses for special needs services; and qualified elementary and secondary expenses (for ESA distributions only).

When the beneficiary enrolls in school and starts taking distributions to pay school expenses, the account manager will begin sending Form 1099-Q each year. And as long as the distributions are used to pay only qualified education expenses, the recipient doesn't pay income tax on the distributions.

Form 1099-Q ensures you're paying your appropriate taxes on distributions from a Coverdell education savings account (ESA) or a 529 plan. If the form indicates you owe taxes, this will need to be included on your state and federal tax returns.

When the Form 1099-Q is issued to the 529 plan beneficiary, any taxable amount of the distribution will be reported on the designated beneficiary's income tax return. This typically results in a lower tax obligation than if the Form 1099-Q is issued to the parent or 529 plan account owner.

If you're paying for school expenses from a 529 plan or a Coverdell ESA, you will likely receive an IRS Form 1099-Q, which reports the total withdrawals you made during the year.