My son is 19 years old and is a full time college student. The 1099q is in his name and he has to file a tax return.
Yes, you are required to report the 1099-Q. The form is sent, not only to you, but to the IRS as well. However, you do not have to pay tax on the distribution if it was rolled over into another qualified tuition plan (QTP).
To enter this information in TurboTax, please follow these steps:
Similar situation, here. The 1099Q shows my son's ssn. My son is a high school senior that takes a couple of classes at the local community college because the high school does not offer any math classes that he has not taken. The ESA (Son with me as authorized person/custodian) was rolled into an existing 529 (me owner, son is beneficiary). Do I report the 1099Q on my return, or my son's return?
I do not think Turbotax covers all the possible scenarios. It covers the rollover case, but does not cover the case where I withdraw from a Coverdell and simply use the money to make a contribution to a 529 of the same beneficiary. That is not a rollover and therefore not subject to the rollover 60 day/1 within a year rules. It is simply considered a qualified expense. However, if you try to enter it as a qualified expense, Turbotax assumes the beneficiary is in college. I have gotten around this by lying to Turbotax that it is a rollover and lying about the dates to satisfy to 1 year rule. Would love ofr someone from Turbotax to comment.