1099 Q Confusion

photoldo · ‎February 11, 2022

I'm confused. We had a 529 for our children. They were never used and I cashed them out in January of 2021. The 1099Q I received lists me in the address block as the RI and my kids as the student. Since they never used these funds I know we have to pay tax on the earnings. My question is who files this information on their taxes? Myself or my kids? The recipients TIN on the 1099Q is my children's SSN. I presume that means they do, but I'm not 100% sure.

Any help is appreciated.

Thanks

Gary

MarilynG1 · ‎February 11, 2022

Yes, generally the Recipient will report the 1099-Q on their tax return, if they are required to file a return.

If not, keep the 1099-Q for your records.

Here's detailed info on Form 1099-Q.

If your student is your dependent, click this link for info on Dependent Filing Requirements. If their investment income exceeds $1,100, they need to file a return.

If their Filing Status is Single, filing requirements are $12,550.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Hal_Al · ‎February 11, 2022

What you're saying doesn't make sense: " The 1099Q I received lists me in the address block as the RI and .... The recipients TIN on the 1099Q is my children's SSN". There is no box for the student's name

I don't know what "RI" is.

Whose name is in the Box "RECIPIENT'S name" and whose SS# is in the box "RECIPIENT'S TIN"? They should be the same. That person will have to file the 1099-Q on their return. The child will probably be subject to the "kiddie tax" where the unearned income is mostly taxed at the parent's marginal rate.

It the recipient's name is, indeed, you but the recipient's TIN (SS#) is the child, it sounds like you registered the account incorrectly. I'd ask for a corrected 1099-Q. Lacking that, I'd follow the SS#.