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Level 2
posted May 14, 2021 5:27:11 PM

Do I need to report Coverdell ESA contribution to IRS?

Can I get clarification ?  I have the following questions:

 

1.  Is Education Savings IRA the same as Coverdell ESA?  Schwab calls it the former.

 

2.  I contributed to Education Savings IRA account last year.  I have not received any official form from Schwab such as a 1099 to file with my tax return.  Do I need to report the contributions somehow to the IRS?

 

3.  Searching online, I came across the form 5498-ESA.  Do I need to fill this out if I don't have any distributions?

0 2 1258
2 Replies
Expert Alumni
May 14, 2021 7:50:37 PM

The contributions do not have to be reported on your federal but may qualify for a deduction on your state return.

 

See Education Savings Account | Charles Schwab it sounds like Topic No. 310 Coverdell Education Savings Accounts | IRS. 

Level 15
May 15, 2021 5:20:25 AM

Q1.  Is Education Savings IRA the same as Coverdell ESA?  Schwab calls it the former.

A.1.  For tax purposes, they are the same.

 

Q. 2.  I contributed to Education Savings IRA account last year.  I have not received any official form from Schwab such as a 1099 to file with my tax return.  Do I need to report the contributions somehow to the IRS?

A.2.  No. See AmyC's answer. For a state list of eligible plans, see:

http://www.savingforcollege.com/compare_529_plans/index.php?page=compare_plan_questions&plan_question_ids[]=437&order_by=plan_question_437

 

Q. 3.  Searching online, I came across the form 5498-ESA.  Do I need to fill this out if I don't have any distributions?

A. 4.  No. It is not "filled out" by the account owner/taxpayer.  It's something the custodian (Schwab) sends to you and the IRS.  It's informational only.  You do not "file it".