The IRS instructions state that if a 529 distribution total is not more than the beneficiary's qualified education expenses, you do not need to report the 1099-Q on your tax return. This is mentioned in Publication 970, Chapter 7, under the heading "Are Distributions Taxable."
You and your granddaughter should keep the 1099-Q form and receipts for tuition paid for at least 3 years in case the IRS audits you. You don't need to enter them into tax software if the money was used for tuition.
If you have entered the 1099-Q, you can delete it from your return. Here is the best way to do this.
- Tax Tools
- Tools
- Delete a form
- Delete form 1099Q
If working in Desktop, go to the forms mode. Locate form 1099Q, select it, and then delete it at the bottom of the form when it appears in the right pane of your screen
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