Me as the father (F) set up a Coverdell ESA for my son (S)
Father F withdrew X dollars from this account to pay for college
Father F received 1099-Q form with following information:
- Recipient TIN: SSN of S
- Box 1: X dollars
- Box 2: Empty
- Box 3: Empty
- Box Coverdell ESA: Yes
- Box Distribution Code: 1
- Box Fair Market Value: ZERO dollars
The distributions reported on 1099-Q are less than the total qualified educational expenses
Father F and son S are filing 2023 tax returns separately. In TT how should the the following questions be answered by father F and son S in their tax returns:
- Were you the beneficiary of a Coverdell ESA
- Did you receive a form 1099-Q for distributions from a Coverdell ESA
Since the distributions are less than QEE, can they answer NO to the above questions i.e. ignore the form completely. If not who should answer YES. I am assuming that only of them must answer the question as YES
please advise
