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Where does the form 1099 Q go in turbo tax

 
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1 Reply
JaimeG
New Member

Where does the form 1099 Q go in turbo tax

If the Distribution doesn’t exceed the amount of the student's qualifying expenses, then the distribution is not Taxable and you don't have to report any of the distribution on your tax return. Quite simply if this is the case you don't have enter the information from 1099-Q. I understand that this sounds strange, especially regarding taxes, but the IRS does not request any additional information to substantiate whether or not your Distribution exceeded your actual qualified expenses. Nevertheless it would be wise to keep a good record of these expenses just in case your return gets picked up for examination.

If the Distribution exceeds these expenses, then you must report the earnings on the excess as "other income" on your tax return. If this is the case you will enter the information by:

  1. entering 1099-Q in the Search Box and click on Jump to 1099-Q.
  2. In order to be taxed only on the amount of the distribution that exceeded your expenses, you will have to enter these Qualified Education Expenses in the Deductions and Credits Section.

TurboTax will do the math and enter the excess distribution as Other Income in your Tax Return.

Additionally When a student’s school expenses are paid with these funds, you cannot claim a tuition deduction or either of the educational tax credits for the same expense. You can only use the American Opportunity Credit if your total Education Expenses exceed your ESA Distribution. The excess education expenses will then be used to calculate the American Opportunity Credit.  

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