Form 1099-Q only needs to be reported on the tax return of the person whose SSN is on the form (it’s either the beneficiary of the account or the account owner) if the withdrawal is more than the tuition paid in Box 1 of the 1098-T plus other adjusted qualified educational expenses. In that case, the earnings on the excess distribution would be taxable income. To find out what are qualified educational expenses, please review the Guide to Tax Form 1098-T: Tuition Statement.
Determine if the Form 1099-Q needs to be reported on the tax return by comparing the withdrawal with the tuition paid on the 1098-T added to other qualified educational expenses. Please review the TurboTax article Guide to IRS Form 1099-Q: Payments from Qualified Education Programs for further details.
If you determine that the 1099-Q needs to be reported on the tax return follow the instructions below:
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.
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