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afd950
New Member

Receive error code after I add a 1099Q with 4 distributions on it. I have no education deductions for it, just looking to add info and pay penalties and go on with filing but get error n won’t fi

 
7 Replies
ColeenD3
Expert Alumni

Receive error code after I add a 1099Q with 4 distributions on it. I have no education deductions for it, just looking to add info and pay penalties and go on with filing but get error n won’t fi

Generally a 1099-Q has one distrbution that is noted in Box 1. Entries in the other boxes are not distributions.

 

If you did have a distribution, ideally you would have had education expenses that were paid by this money.

 

Here's some other info you may find helpful:

If you contribute money to a qualified tuition program, such as a 529 plan or a Coverdell ESA, you will likely receive an IRS Form 1099-Q in each year you make withdrawals to pay school expenses of the beneficiary. The 1099-Q reports the total of all withdrawals you make during the year; however, some of this amount may be taxable depending on how you spend the money.

 

The 1099-Q provides three key pieces of information. Box 1 reports your annual distributions or withdrawals from the account. The second box reports the portion of the distribution that represents the income or earnings of your initial investment. Finally, box 3 reports your basis in the distribution. Essentially, this is the amount of your distribution that relates to original contributions you make to the account.

The form also includes information on the type of account you own and amounts, if any, that you transfer between two qualified tuition plans.

 

Calculating taxable amount

If the distribution doesn’t exceed the amount of the student's qualifying expenses, then you don't have to report any of the distribution as income on your tax return. If the distribution exceeds these expenses, then you must report the earnings on the excess as "other income" on your tax return. When you pay a student’s school expenses with these funds, you cannot claim a tuition deduction or either of the educational tax credits for the same expense.

afd950
New Member

Receive error code after I add a 1099Q with 4 distributions on it. I have no education deductions for it, just looking to add info and pay penalties and go on with filing but get error n won’t fi

Appreciate You trying to answer the question.. but if you read the question it said I did not have any Educational Deductions.. I have Filed 1099Q in past several times with no issues on TurboTax.. actually last year.. had 2 account withdrawals/deductions for 2,500 total with no Educational deductions.. paid taxes n 10% penalty no problems filing.. now this year I have 4 account withdrawals/deductions for 4,500 total with no Educational deductions.. and now I get the message about error n new law n such which I can’t find anywhere in IRS code book.. what gives 

KrisD15
Expert Alumni

Receive error code after I add a 1099Q with 4 distributions on it. I have no education deductions for it, just looking to add info and pay penalties and go on with filing but get error n won’t fi

If you took distributions from more than one account, you must enter separate 1099-Q's for each distribution. 

 

More than one 529 account may not be reported on a single 1099-Q unless the Account Owner AND Beneficiary are the same on all the accounts reported on that 1099-Q.

If you received one 1099-Q for more than one student, send the link provided below to the entity that issued the 1099-Q and request they send you a separate 1099-Q for each account.

TurboTax cannot separate computations between more than one student from a single 1099-Q.

 

ACCORDING TO THE IRS:

“only accounts maintained within the same section 529 qualified tuition program and having the same account owner and the same designated beneficiary are aggregated for purposes of calculating the earnings portion of any distribution”

Click this link and look at Part III section 3

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kdawng20
New Member

Receive error code after I add a 1099Q with 4 distributions on it. I have no education deductions for it, just looking to add info and pay penalties and go on with filing but get error n won’t fi

i'm getting the same error... never had a problem in the past.  did you ever figure it out? i entered everything correctly.  it won't let me file my return because of it.  

SusanY1
Expert Alumni

Receive error code after I add a 1099Q with 4 distributions on it. I have no education deductions for it, just looking to add info and pay penalties and go on with filing but get error n won’t fi

Late year tax law changes (December 20, 2020) that apply to the way many distributions are handled from qualified tuition plan distributions are causing delays in the programming of this section of TurboTax. 


We hope to have this area of the program updated soon so that you can file.  

 

If you need to file your return immediately, you could remove Form 1099-Q  and amend the return after the updates are made, but I do not expect them to take much longer. 

 

 

@kdawng20

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purplek
New Member

Receive error code after I add a 1099Q with 4 distributions on it. I have no education deductions for it, just looking to add info and pay penalties and go on with filing but get error n won’t fi

Are there any updates on when this software will have updates completed so that I can file? I see that as of 3 weeks ago they were still working on it. Is there any info on how much longer this will be?

 

KrisD15
Expert Alumni

Receive error code after I add a 1099Q with 4 distributions on it. I have no education deductions for it, just looking to add info and pay penalties and go on with filing but get error n won’t fi

TurboTax was being updated to accommodate for changes recently enacted by Congress. 

That update is complete. 

There should be a separated 1099-Q for each account. If the four distributions were made from the same account for the same student, one 1099-Q will work.

If the distributions were from more than one account, you may need to enter the information as if you have separated forms. The account trustee should be able to give you the proper numbers for those entries. 

 

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