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Retirement tax questions
This 1099-Q is simply to show that the original trustee made a reportable distribution from an ESA. If you rolled over this distribution into another ESA account within 60 days the distribution reflected in the current 1099-Q is not taxable.
Since this was a Qualified Distribution you do not have to report the information from this form on your Tax Return. You only have to report distributions from and ESA that are taxable. Usually a taxable distribution from an ESA occurs when the amount of the distribution exceeds the amount of Qualified Education expenses for that year. This is very common with students who receive Scholarships and Grants, all the while receiving a distribution from and ESA. The money from the Scholarships and Grants offsets what would have been Qualified Education Expenses.