Where to enter 1099-Q

[SharonD007]

Form 1099-Q only needs to be reported on the tax return of the person whose SSN is on the form (it’s either the beneficiary of the account or the account owner) if the withdrawal is more than the tuition paid in Box 1 of the 1098-T plus other adjusted qualified educational expenses.  In that case, the earnings on the excess distribution would be taxable income.  To find out what are qualified educational expenses, please review the Guide to Tax Form 1098-T: Tuition Statement.

Determine if the Form 1099-Q needs to be reported on the tax return by comparing the withdrawal with the tuition paid on the 1098-T added to other qualified educational expenses. Please review the TurboTax article Guide to IRS Form 1099-Q: Payments from Qualified Education Programs for further details.

If you determine that the 1099-Q needs to be reported on the tax return follow the instructions below:

 If you are using TurboTax Online:

1. Launch TurboTax
2. In the search box type: 1099-Q and select the Jump to link
3. Follow the screens to enter your information.

[Hal_Al]

You can just not enter the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip! 

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."