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posted May 31, 2019 11:40:07 PM

My son received an educational ira payment. My deceased husband was the custodian of the account. All the money went toward 2016 tuition and I paid the bal. who claims.

this money myself or my son who is filling separately, but my dependent.

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1 Best answer
Level 15
May 31, 2019 11:40:08 PM

The 1099Q will be issued.  The 1099Q would go on the husband's return.  If he passed away in 2016, a joint return could be filed for 2016 with the 1099Q on it.  The 1099Q does not go on the dependent's return (your son). 

If it was used for Education, there would be no taxable income from it.  

Due to the husband's death, the owner of the Educational IRA needs to change (probably to you).  

For additional detail see:

https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-Is-IRS-Form-1099-Q-/INF14817.html

 Withdrawals from Coverdell ESAs generally are tax-free to the extent that the amount of the withdrawal is not more than the beneficiary's qualified education expenses.

1 Replies
Level 15
May 31, 2019 11:40:08 PM

The 1099Q will be issued.  The 1099Q would go on the husband's return.  If he passed away in 2016, a joint return could be filed for 2016 with the 1099Q on it.  The 1099Q does not go on the dependent's return (your son). 

If it was used for Education, there would be no taxable income from it.  

Due to the husband's death, the owner of the Educational IRA needs to change (probably to you).  

For additional detail see:

https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-Is-IRS-Form-1099-Q-/INF14817.html

 Withdrawals from Coverdell ESAs generally are tax-free to the extent that the amount of the withdrawal is not more than the beneficiary's qualified education expenses.