Since the cost of your dependent’s qualifying educational expenses exceeded your 529 Plan distribution, you are not required to report it on your tax return. Just keep the document with your tax records. You only need to report the 1099-Q if your 529 Plan distribution exceeds your dependent’s qualifying educational expenses. You will report the earnings on the excess distribution as Other Income on your tax return. Make sure that you enter the 1099-Q on the tax return of the person whose SSN is on the form.
Please review the TurboTax articles What is IRS Form 1099-Q? and Guide to IRS Form 1099-Q: Payments from Qualified Education Programs for further details.
Here are the instructions to enter your 1099-Q into TurboTax. If you are using TurboTax Online:
- Launch TurboTax
- In the search box type: 1099-Q and select the Jump to link
- Follow the screens to enter your information.
If you are using TurboTax CD/Download:
- Launch TurboTax
- Select Federal Taxes and then select Deductions & Credits
- Select I'll choose what I work on
- Scroll down to Education, select Start or Update next to ESA and 529 qualified tuition programs (Form 1099-Q)
- Follow the screens to enter your information.
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