Form 1099-Q

Forum|Forum|5 years ago
March 31, 2021
3 replies
36 views

My son will file a return with his W-2 to get back $57 that was withheld and indicate that he will be claimed by another as dependent. Then I will claim him on my return and enter Form 1098-T data, what happens to Form 1099-Q? Should I disregard it and file it for my records?

ToddL99

Alumni - Intuit

Please clarify - was the 1099-Q issued to you or your son, i.e. whose SSN is listed as recipient?

Lizzy1217Author

Level 2

My son is going to Community College and received a Form 1099-Q from Florida College Prepaid and his name is the recipients and his social is in the recipient's TIN box, but I am the owner who paid for the Florida College Prepaid plan. My son only worked 2 months in 2020 and earned $2681 in box 1 and $57 in box 2 of his W-2. I created a return for him in Turbo Tax and it started showing a refund of $57 until I entered Form 1099-Q which appears as if he had income and changes his refund to $1. In a previous post I was told my son could do his return with only W-2 so he received his $57 and indicate that he will declared as dependent on another return. My new question is, what do I do with Form 1099-Q, disregard it and not add it to my, but file it for my records?

ToddL99

Alumni - Intuit

As long the distribution was used to cover qualified educational expenses, he does not have to report it on his return - you can disregard it and file it in your records.

You cannot, however, "double-dip". In other words, if you are claiming an education credit (for him) on your return, you cannot claim the same expenses he is using to get tax-free treatment of his 1099-Q distribution.

See @HalAl 's answer in the middle of the following post: My son is nondependent who files own income tax. We withdrew 529 funds and used for his education. On which tax return does the 1099-Q and 1098-T go on? His or mine?