Form 1099-Q reports distributions and benefits from Coverdell education savings accounts and 529 plans. It's reported on the tax return of the person whose Social Security number is on the form.
Here's how to enter your 1099-Q 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.
Note:
A 529 plan (aka qualified tuition plan or QTP) is operated by a state or educational institution with tax benefits and other incentives, making it easier to save for college, post-secondary training, and K–12 education expenses.
Formerly limited to higher education, 529 plan distributions can be used towards qualified K–12 expenses – up to $10,000 per student – in tax years 2018 through 2025.
You can set up a 529 plan for yourself or a designated beneficiary such as a child or grandchild. Earnings on 529 plans aren’t taxed by the federal government nor most states, as long as the distributions are used towards qualified education expenses.
Distributions from 529 plans are generally reported on Form 1099-Q.
