Q. The only "income" my child has is a 1099-Q. If it matches up with 1099-T expenses, with a net tax due of $0, is my child required to file a 1040, to SHOW that they match up?
A. No.
References:
- 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."
- IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.
