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1099-Q is a rollover but it's generating tax liability. Can't seem to fix it,

 
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3 Replies
KrisD15
Expert Alumni

1099-Q is a rollover but it's generating tax liability. Can't seem to fix it,

To clarify, was it a roll-over to Roth?

Was it done Trustee to Trustee? 

 

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1099-Q is a rollover but it's generating tax liability. Can't seem to fix it,

Trustee to trustee

No education expenses paid as it was just a rollover from 529 to 529 from one state to another.

SusanY1
Expert Alumni

1099-Q is a rollover but it's generating tax liability. Can't seem to fix it,

Transfers between 529 plans are not required to be reported on your tax return (and there is no way to properly report them).  The program sees the income, but doesn't know what to do with it since there is no corresponding tax line for transfers/rollovers (the way there can be for retirement account rollovers.)

 The solution here is to remove the 1099-Q entry from TurboTax and keep the form for your records.  

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