topic How do you enter numbers from a 1099 q and multiple 1098Ts? in Get your taxes done using TurboTax

How do you enter numbers from a 1099 q and multiple 1098Ts?

mtgawed — Tue, 04 Feb 2020 21:22:17 GMT

Re: How do you enter numbers from a 1099 q and multiple 1098Ts?

TomK100 — Tue, 04 Feb 2020 21:41:44 GMT

Form 1099-Q reports distributions and benefits from Coverdell education savings accounts and 529 plans.

The 1099-Q is reported on the recipient's tax return (the person whose Social Security number is on the form). If the funds went directly to the school, consider the student as the recipient, and if the student is your dependent, you should enter the 1099-Q on your return.

Here's how to enter your 1099-Q in TurboTax:

Open or continue your return.
Select Federal and then Deductions & Credits.
Scroll down to the Education section under All tax breaks.
Select, Show more and select Start or Revisit next to ESA and 529 qualified tuition programs (Form 1099-Q).
Follow the screens to enter your info.

If you're using the mobile app, go here for mobile-specific instructions.

Please see this Help article for information on how to enter your school information (1098-T) in TurboTax

Re: How do you enter numbers from a 1099 q and multiple 1098Ts?

MrSandman — Mon, 27 Mar 2023 00:43:50 GMT

I did a transfer/rollover in 2022 and the 1099-q I received from the seller-side has an entry for every mutual fund that was sold. So this ends up being > 10 1099-q's, but TurboTax only lets me enter the first 10. All of these are rollovers and the Payer info is the same in all cases, but the account number is different for every case. What do I do?

Thanks.

Re: How do you enter numbers from a 1099 q and multiple 1098Ts?

KrisD15 — Mon, 27 Mar 2023 02:18:27 GMT

If this was all just one rollover of an Education Savings Account, (and you did not take out any cash or make any distributions) you needn't even enter the 1099-Q.

Re: How do you enter numbers from a 1099 q and multiple 1098Ts?

MrSandman — Mon, 27 Mar 2023 19:03:11 GMT

That is excellent news. I thought that since I had received those forms, I was required to enter them regardless of the fact that they should have no impact on my tax liability.

Re: How do you enter numbers from a 1099 q and multiple 1098Ts?

AmyC — Mon, 27 Mar 2023 19:18:34 GMT

Only taxable amounts from the 1099-Q are reported on your tax return.

For additional 1099-Q information, see IRS Publication 970, Tax Benefits for Education.

Re: How do you enter numbers from a 1099 q and multiple 1098Ts?

MrSandman — Mon, 27 Mar 2023 22:45:44 GMT

So, in a few years I will be taking disbursements to pay for college; what if I have more than 10 funds from which I sell to accomplish that? How would I enter that into TurboTax? Again, there would be no tax liability, but I imagine I have to report it in my taxes anyway.

Re: How do you enter numbers from a 1099 q and multiple 1098Ts?

KrisD15 — Mon, 27 Mar 2023 23:18:53 GMT

No, the IRS says you should not report distribution that are not taxable.

Additionally, I assume the 2022 Tax Year 1099-Q reported sales because it was rolled over into a different account.

Once distributions are used for education purposes, only one 1099-Q should be issued with Boxes 1-3 reported.

Also, there are some changes planned for Education Savings Accounts, like the ability to roll funds into a Roth Account (with restrictions). Ask your plan administrator for details, or read next year's Pub 970 for the changes to be explained further.

According to the IRS:

“Don't report tax-free distributions (including qualifying rollovers) on your tax return.”

Pub 970