Q. The 1099-Q does not have distributions, transferred the 529 money from one financial institution to another one. No financial impact. Do I still need to file amendment?
A. No. The 1099-Q is only an informational document. It does not need to be entered onto your tax return or into the TurboTax program.
When the box 1 amount on form 1099-Q is fully covered by expenses, including rollovers (transfers) TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records.
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
