My son got a partial scholarship, half paid tuition assistance from my job, and I had purchased a prepaid college tuition (PACT). I pay zero for college and we actually get a refund each semester from PACT. My son got a 1099-Q form. I got a 1098-T form. Common sense tells me I do not get a tax break with zero expenses. And from what I’ve read he may need to pay tax on the refund since the 1099-Q is his and can be considered income, although I don’t think so as it was already taxed money used to purchase the PACT prepaid tuition. H&R Block does not say “input the 1099-Q here” in their program. I’ve read and heard multiple different answers and it’s very confusing. I think I’m going to my Mom’s CPA.
I’ve done my own taxes for years but this one has stumped me. I ignored the forms last year and I think that’s the right answer.