topic Where do I take the eligible room and board deduction, which was paid by a 529 savings distribution? in Education

Where do I take the eligible room and board deduction, which was paid by a 529 savings distribution?

kr5 — Thu, 06 Jun 2019 17:46:05 GMT

I contributed $6000 to my son's 529 savings during 2017. At the end of the year, I took a distribution of $6000 for his room and board. Since this is an eligible expense, where do I take the deduction in TurboTax?

You can enter Room and Board expenses in the Education (F...

CarolC — Thu, 06 Jun 2019 17:46:06 GMT

You can enter Room and Board expenses in the Education (Form 1098-T) section of TurboTax.

In the education section, under Here's Your Education Summary, scroll down to Other Education Expenses (for all schools). Click Edit. See screenshot attached at the bottom left.

See the TurboTax FAQs below for steps on entering Forms 1099-Q and 1098-T. Click "See entire answer" for the full page views.

https://ttlc.intuit.com/replies/5113308

https://ttlc.intuit.com/replies/4194409

Re: You can enter Room and Board expenses in the Education (F...

Amy278 — Fri, 29 Jan 2021 17:20:30 GMT

There is NO PLACE to enter Room & Board. Turbotax is so frustrating!!!

Re: You can enter Room and Board expenses in the Education (F...

Irene2805 — Fri, 29 Jan 2021 18:48:49 GMT

Room and board are not considered deductible expenses, UNLESS the 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 portion of the distribution. This is your situation.

First enter the education expenses in the 1098-T section following these steps:

In your return, click on Federal > Deductions.
In the Education section, click Start/Revisit next to Expenses and Scholarships (Form 1098-T).
Continue through the screens, entering the requested information.
Room and Board are entered on the screen, Did [XX] Pay for Books or Materials to attend school. [See screenshot below.]

Next enter your 1099-Q:

On the Deductions & Credits screen, scroll to the Education section.
Click the Start box next to ESA and 529 qualified tuition programs (Form 1099-Q).
On the screen, Tell us about your education plans, mark the YES radio button next to Did you receive a 1099-Q...
Continue through the screens, entering the requested information.
Since you entered room and board expenses in the 1098-T section, you should see the screen that your 1099-Q is not taxable!

@Amy278

Re: You can enter Room and Board expenses in the Education (F...

Hal_Al — Sat, 30 Jan 2021 15:21:14 GMT

Note the "trick". You have to answer yes to the did you buy books question to get the box to enter room & board. Yes, frustrating!

Alternatively; you can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records.

Re: You can enter Room and Board expenses in the Education (F...

Amy278 — Sat, 30 Jan 2021 15:19:03 GMT

My screen doesn’t have most of the line items shown on your screen.

Re: You can enter Room and Board expenses in the Education (F...

Amy278 — Sat, 30 Jan 2021 15:38:58 GMT

I’ve finally figured it out! You have to enter the 1099-Q information first, in order to get the room & board line to appear on the expenses.

Re: You can enter Room and Board expenses in the Education (F...

DTMT — Mon, 15 Feb 2021 21:48:43 GMT

My Turbotax Deluxe 2020 has the screen you show, but it stops after the book and materials, required and not required steps. It does not have the room and board line.

I have tried everything, but there doesn't seem to be a chance to input expenses for which the CESA distribution has been used, like room and board, internet charges, etc.

Re: You can enter Room and Board expenses in the Education (F...

DTMT — Mon, 15 Feb 2021 21:49:15 GMT

Did you ever find where to input room and board?

Re: You can enter Room and Board expenses in the Education (F...

DTMT — Mon, 15 Feb 2021 21:51:22 GMT

will either the required or not required books "yes" work?

I have checked the Not required and I still don't get the chance to input room and board.

Re: You can enter Room and Board expenses in the Education (F...

Hal_Al — Mon, 15 Feb 2021 21:59:12 GMT

TurboTax will not give you the room and board entry screen/box until you enter the 1099-Q and complete the 529 distribution interview. Room & board (and other 529 qualified expenses) entry box will be on the same screen as books.

Re: You can enter Room and Board expenses in the Education (F...

DTMT — Mon, 15 Feb 2021 22:05:05 GMT

I have entered my 1099Q already.

I used a CESA (Coverdell savings) distribution to pay the room and board.

I did not get to a page in Turbotax that lists room and board.

what am I doing wrong?

Re: You can enter Room and Board expenses in the Education (F...

DTMT — Mon, 15 Feb 2021 22:06:29 GMT

@Amy278 I tried this, it still doesn't work??

Re: You can enter Room and Board expenses in the Education (F...

Hal_Al — Mon, 15 Feb 2021 22:10:25 GMT

@DTMT

You may have to delete the education info and start over, starting with the 1099-q.

Using desktop (not online) Deluxe, I was able to get the R&B screen even though I added the 1099-Q last.

Re: You can enter Room and Board expenses in the Education (F...

DTMT — Mon, 15 Feb 2021 22:18:07 GMT

@Hal al maybe that's the issue. my version is downloaded, online.

Seems it should be the same.

I have deleted and re-entered twice, it still doesn't come up on that screen.

Is there a way to chat with Turbotax and ask them?

I'm at wits end.

Re: You can enter Room and Board expenses in the Education (F...

Amy278 — Mon, 15 Feb 2021 22:26:52 GMT

Yes, finally! TurboTax will not give you the room and board entry screen/box until you enter the 1099-Q and complete the 529 distribution interview. Room & board (and other 529 qualified expenses) entry box will be on the same screen as books.

Re: You can enter Room and Board expenses in the Education (F...

Amy278 — Mon, 15 Feb 2021 22:27:42 GMT

Re: You can enter Room and Board expenses in the Education (F...

DTMT — Mon, 15 Feb 2021 22:30:28 GMT

@Amy278

I did enter 1099Q

I didn't have 529, I had Coverdell Education Savings Account, does that matter?

Where do I find the interview that you mention?

Re: You can enter Room and Board expenses in the Education (F...

Amy278 — Mon, 15 Feb 2021 23:29:28 GMT

I believe the interview came up after I checked the 529 box. I don’t know about the Coverdell Savings account - I bet you can search for information about Coverdell within TurboTax. Another thing you could try, check the 529 box and see if the correct screens come up. If they don’t come up for Coverdell, but do for a 529, maybe it’s not deductible.

Re: You can enter Room and Board expenses in the Education (F...

MaryM428 — Tue, 16 Feb 2021 01:24:24 GMT

Select Federal Taxes
Select Deductions and Credits
Select Show More at Education
Select Start or Revisit at ESA and 529 qualified tuition programs (Form 1099-Q)

The Coverdell screen will come up in the interview and you can choose the correct options for you.

@ DTMT