Q. is Coverdell Education Savings Account same as 529?
A. Yes, for most of the rules. But not for your particular question.
Q. Were you a beneficiary of Coverdell Education Savings Account (ESA). Should I answer Yes or No?
A. Answer No.
Q. Did you receive form 1099-Q for distribution from a coverdell (ESA) or qualified tuition program (QTP). Yes No?
A. Answer no, because your Mom was the recipient. Theoretically, you could answer yes, If you needed help, in calculating your tuition credit, because some of the tuition was covered by the 529. But, that gets complicated and should be avoided if you are able to make your own determination.
You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip!
On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."
