Do I enter 1099Q in fed for a 529 distribution that I paid to daughter's K ? I contributed 4000 Va. 529 and took a 4000 distribution. Do I need a 1098 from school?

[shira617]

I contributed 4000 to Va 529 for my daughter (beneficiary).  I then withdrew 4000 that I used to pay toward her kindergarten tuition.  (Tuition is more than 4000). I entered the 529 contribution in the Va. return.  Do I need to enter 1099 Q in the federal return?

Also, I did not receive a 1098 from the school.  Do I need one each year?  If so, is that entered in federal, state or both?

[KrisD · Accepted solution]

No, if you used the 1099-Q distribution for Kindergarten, and the tuition was as much or more than the distribution, you do not NEED to enter the 1099-Q. Please keep the 1099-Q and the tuition receipt with your tax file. 

You MAY enter the 1099-Q, the program will ask if it was used for K-12 education, and when you answer yes, the program will tell you that it is not taxable. There is no reporting that is sent with your Federal return for this 1099-Q. 

You will not receive a 1098-T until the student starts college, at which time the 1098-T is entered to offset distributions and/or apply for an education credit. 

CLICK HERE for IRS Pub 970 Tax Benefits for Education