If your children are the listed recipients, then it does not go on your tax return. It would instead go on theirs if they are required to file it.
If the entire distribution was used for qualified education expenses, even if you are listed as the beneficiary, it should not have any tax consequence on your return. To enter it in TurboTax:
- Open or continue your return.
- Select Federal and then Deductions & Credits.
- Scroll down to the Education section under All tax breaks.
- Select Show more and select Start or Revisit next to ESA and 529 qualified tuition programs (Form 1099-Q).
- Follow the screens to enter your info. Select yourself as the recipient and under Who's the student? select Someone else not listed here and enter the child's name.
- Enter the 1099-Q and answer the follow-up questions. When you are returned to Form 1099-Q Summary, select Done
- Select the level of school your child attended
- Enter the non-dependent student's expenses
If you split the withdrawal between two students' expenses, you can create a separate 1099-Q for each student to report each one on a separate form.
Again, if your children are the listed recipients, you do not need to report this at all. This is often the case if the distribution goes directly to the school. If the entire distribution is used entirely for qualified education expenses, nothing is reported on any form that is filed with the IRS. Entering all this information is just for your records in case the distribution gets questioned.
