Form 1099-Q reports distributions and benefits from Coverdell education savings accounts and 529 plans. It's reported on the tax return of the person whose Social Security number is on the form. And, for your son:
If you know that the distributions from the 529 plan are not taxable because they were used on qualified expenses, do not enter the 1099-Q forms. For most qualified education program beneficiaries, the amounts reported on the 1099-Q aren’t reported on a tax return. Keep the form and associated education expenses with your tax records.
However, if annual distributions exceed your adjusted qualified education expenses, you may need to report some of the earnings reported in box 2 as income on your tax return and pay an additional 10 percent tax on it as well. Your adjusted expenses are equal to the total of your qualified education expenses minus other tax-free assistance you receive, such as scholarships and Pell grants. You can't take an education credit for expenses covered by your 529 distribution, so don't enter those expenses if you are not reporting the 1099-Q.
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