Q. The distribution came to me. Who does that make the recipient?
A. It's still her.
Q. Does she have to file a return (again she's not employed) just to handle the 1099-Q?
A. Maybe
The 1099-Q is only an informational document; it does not have to be reported at all.
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."
If you know, or think, some of it is taxable, then it would be reported on your daughter's return, because she is the recipient. If the taxable amount is less than $1100, and that is her only income, then she still would not need to file.
If she does need to file, then she can enter the 1099-Q to let TurboTax calculate the taxable amount.
Provide the following info for more specific help:
- Box 1 of the 1098-T
- box 5 of the 1098-T
- Does box 5 include any of the ESA distribution (it should not)
- Box 1 of the 1099-Q
- Box 2 of the 1098-Q
- Room & board paid. If she lives off campus, what is school's R&B charge
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
