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posted Jun 4, 2019 3:10:31 PM

I have a 529 for my grandson. When I record the info from the 1099-q TT picks up taxable income. Why?

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1 Best answer
Intuit Alumni
Jun 4, 2019 3:10:33 PM

You only enter the 1099-Q if it was issued to you. If it was issued to the student, that student, or the person claiming the student, enters it. 

If the 1099-Q was issued to you, and if it was used for education expenses, be sure to continue through the interview and answer the questions carefully.

Select that it was used for someone else (unless the student is your dependent) and that it was used for education purposes. (if it was) You will need to touch base with the student and ensure that education expenses are not used twice. 

It is easier if, and the accounts were really designed for, the student to make the distribution. Funds can also be directly transferred to the school, in which case the 1099-Q is issued to the student. 

CLICK HERE for IRS Pub 970 Tax Benefits for Education

1 Replies
Intuit Alumni
Jun 4, 2019 3:10:33 PM

You only enter the 1099-Q if it was issued to you. If it was issued to the student, that student, or the person claiming the student, enters it. 

If the 1099-Q was issued to you, and if it was used for education expenses, be sure to continue through the interview and answer the questions carefully.

Select that it was used for someone else (unless the student is your dependent) and that it was used for education purposes. (if it was) You will need to touch base with the student and ensure that education expenses are not used twice. 

It is easier if, and the accounts were really designed for, the student to make the distribution. Funds can also be directly transferred to the school, in which case the 1099-Q is issued to the student. 

CLICK HERE for IRS Pub 970 Tax Benefits for Education