Is there a benefit to having a double major?

IRS does not allow "double benefit" when you withdraw tax-free funds for college expenses.

  • "double benefit" is where the funds are already tax-free (such as from a 529 or prepaid college savings plan where distributions for college are tax-free) and then you claim a "deduction" on those very same funds, therefore receiving a DOUBLE benefit (which IRS does not permit). Turbo Tax software does not seem to detect situations where this double benefit may apply. Turbo Tax merely asks for a 1098-T and asks no further clarifying questions. Any suggestions?

  • Answer:

    I am looking at Turbo tax now, but I do not have your information for the 1098-T. But, it since the money is coming out of a 529, you should not be claiming it as a deduction. You should only be deducting those expenses that are not covered by funds from the 529. If you can send me a private message with the numbers or codes in the 9 boxes, I can run the 1098-T and see what the results are.

washerwoman at Amazon Askville Visit the source

Was this solution helpful to you?

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.