Yes, you are required to report the 1099-Q. The form is sent, not only to you, but to the IRS as well. However, you do not have to pay tax on the distribution if it was rolled over into another qualified tuition plan (QTP).
To enter this
information in TurboTax, please follow
these steps:
- Click on Federal Taxes >
Deductions & Credits [In
TT Home & Biz: Personal >
Deductions & Credits > I’ll choose what I work on]
- Scroll down to the Education section.
- Click on the Start/Revisit box
next to ESA and 529 qualified tuition programs (Form
1099-Q).
- On the next screen, Education Plans,
click Yes and then Continue.
- On the Form 1099-Q Information screen,
enter the information from your form and click the Continue box. [Screenshot #3]
- If this was a direct trustee-to-trustee rollover, be sure to mark Box 4 on the 1099-Q entry screen.
- On the Distribution Transfer screen, click the blue Yes box to indicate that the distribution was rolled over to another QTP.
- Continue through the interview, entering the requested information.
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