whom should report/enter1099-Q for filing tax

[asm_ahsan]

I am the recipient of 1099-Q form. Beneficiary is my son who is a first year student in a university and has no W2 or income. His tution is higher than the distribution in 1099-Q.

Due to economic impact payment & education credit. My son is submitting his own tax (I mean he is not a dependent in my tax filing). Here is a few question:

1) I am the recipient of 1099-Q even though my son is the beneficiary of the account. Since my son is submitting tax seperately, who should report 1099-Q

2) I did not report 1099-Q in my filing but my son does. Is it ok? Looks like it has zero impact in his filing but during entry, turbotax print a msg that some amount is taxable income and should report it but I do not know how? it may be mention that there is earnings (box 2) & basis (box 3)

Any suggestion or help is really appreciated

[FangxiaL]

Your son is your dependent and he should not file his own independent return for the stimulus payments, strictly speaking, assuming your son is under age 24.

If your son is over 23, it is a different story. 

1) You are the recipient, the 1099-Q should go on your return if you choose to report it;

2) Your son cannot report the 1099-Q on his return as he is not the recipient. 

You may not need to enter the 1099-Q on your return if all the distribution went to tuition and other educational expenses. 

[asm_ahsan]

Thanks for your valuable inputs!

[Hal_Al]

@asm_ahsan  said "His tuition is higher than the distribution in 1099-Q."

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." 

Room and board (even if the student lives off campus or at home), books and a required computer are also qualified expenses for a 1099-Q. 

[asm_ahsan]

thanks for explaining in details. it is really helpful