siborg613
Returning Member

coverdell esa

I have been contributing to my sons Coverdell ESA for years (with after tax money) and in 2019 I, the recipient, took a distribution of $2000 to pay for his college expenses.

The 1099Q I received shows box 1 (Gross Distributions) of $2000 and $0 in boxes 2 and 3. It also shows FMV of 22,100.

When I enter the info in TT, my refund goes down as if i am being taxed on the $2000 even though its for a qualified distribution.