If you are listed as the recipient, you claim the 1099-Q on your return. Otherwise, it goes on your child's return. 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
Your daughter may still be eligible to claim an education credit on her own return, but she cannot use any expense as a qualified education expense that you paid for with the 529 withdrawal or was covered by a scholarship.
