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Chuck52
New Member

529 Distribution not used for educadtion

My grandson cleaned out his 529 account to pay for a car and apartment furnishings. Since there is no 1099-Q or 1099-T for this distribution, who is responsible for the taxes, and how is it reported?

 

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1 Reply
Hal_Al
Level 15

529 Distribution not used for educadtion

If you didn't get a 1099-Q, you enter at the 1099-Q place in TT.  But, there is always a 1099-Q, when there is a 529 distribution. You need to ask the plan administrator for a copy.  You can usually get a copy from the plan's web site.  You don't need a 1098-T, in your situation. 

 

For 529 plans, there is an “owner” (usually the parent but could be a grandparent), and a “beneficiary” . The "recipient" of the distribution can be either the owner or the beneficiary depending on who the money was sent to. The distribution will be reported on IRS form 1099-Q. 
The 1099-Q gets reported on the recipient's return, if any of it is taxable. The recipient's name & SS# will be on the 1099-Q.

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