If you received a 1099-Q with an amount listed in Box 1, you can report the distribution in two ways:
- If you received a 1099-Q distribution and used it to pay qualified education expenses, you can exclude the 1099-Q income. Enter the Gross Distribution, Earnings and Qualified Expenses here to exclude the income.
- If you wish to claim a larger Education Credit instead, enter all of the 1099-Q income here and do not enter any qualified expenses. Instead list all of your qualified expenses under the Education Credit section. The income on the 1099-Q will be included on your return.
Whichever option you choose, the expenses can only be listed once. If you choose Option 1 and list qualified expenses to exclude the distribution income, you must reduce your total qualified education expenses by the amount claimed here.
