Education benefits are a frequent source of client confusion and return errors because the forms do not always tell the full story. In this session, we’ll use a practical approach to reporting education items on individual income tax returns. We’ll focus on how to match Form 1098-T, Tuition Statement, and Form 1099-Q, Payments From Qualified Education Programs, to the expenses actually paid, avoiding double-dipping between credits and tax-free distributions. We’ll also cover common client questions and explain how to document and communicate the results in a way clients can understand.
Objectives
Upon completion of this session, you will be able to:
Identify the information on Form 1098-T and Form 1099-Q that drives reporting on the individual return
Reconcile education expenses and assistance to determine what qualifies for education credits and what supports tax-free distributions
Apply the coordination rules to avoid double-dipping between education credits and §529 plan distributions
Determine the correct tax treatment of scholarships, grants, and other student aid, including when amounts are taxable
