1099Q report or not?

[Dflex CEO]

I received a 1099-Q and would like to know if I need to report it on my tax return.

I am the recipient, and my daughter is the beneficiary. The gross distribution was $22,000, which I used to pay for her tuition. TurboTax prompted me to enter the 1099-Q under the personal income section. Some sources say I don’t need to report it since the funds were used for qualified education expenses, but I feel uneasy about not reporting a tax form.

Any advice?

[SabrinaD2]

Yes, you generally need to report the 1099-Q on your tax return.

Key Points:

• Form 1099-Q: Reports distributions and benefits from Coverdell education savings accounts and 529 plans. It's reported on the tax return of the person whose Social Security number is on the form.
• Qualified Education Expenses: Since the $22,000 distribution was used for your daughter's tuition, it is generally not taxable.
• Taxability: When you enter the 1099-Q, TurboTax will help you determine taxability and only report any taxable income.

Steps to Report 1099-Q in TurboTax:

1. Open or continue your return.
2. Cick Form 1099-Q.
3. Follow the screens to enter your info.

Additional information about 1099-Q can be found here.

 

[Dflex CEO]

Super Clear!!

Thank you!