1099Q distribution states does not add up but it does?

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MarilynG

Alumni - Intuit

If your 1099-Q distribution was entirely used for qualified education expenses (including room and board), you don't need to enter it in TurboTax. Keep records of what expenses were paid with the distribution.

Here's more detailed info on Form 1099-Q.

@august051981

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j0mike1993

Level 2

Even if you used your ESA distribution for education expenses, you should still enter your 1099Q with expenses especially if you’re receiving any education credit. Turbo Tax calculates your cost basis and earned income every year. You will eventually have to go back and figure out. I do not recommend skipping this step. Your financial institution does not report those amounts on your 1099Q, you get them from your tax return. Years ago turbo tax told me I didn’t have to enter 1099Q since I used distribution for education expenses. When I rolled over, I had to go back and recalculate.

MarilynG

Alumni - Intuit

If you rolled over your some or all of your balance in a 529 plan, your financial institution should be able to tell you your earnings, which is the only amount that may be taxable.

They should also have records of your contributions made (if you don't), which is your Cost Basis. Box 2 (earnings) and Box 3 (Cost Basis) should add up to Box 1 (Distribution) amounts.

Here's more detailed info on Form 1099-Q.

@j0mike1993

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