topic 1099q in Get your taxes done using TurboTax

1099q

Tax_Customer1 — Wed, 31 Mar 2021 12:30:10 GMT

I received two 1099Q stmnts from my 529.

On one, the 1099Q has me as the recipient (my daughter is the beneficiary). When trying to file this in TT, my tax liability goes up $3K.

On the other 1099Q, my daughter is the recipient.

Can I file both 1099Qs in my return? My daughter, age 18, is still a dependent.

Thanks!

Re: 1099q

KathrynG3 — Wed, 31 Mar 2021 13:12:38 GMT

It depends. Only the person who receives the funds and whose social security number is on Form 1099-Q must report Form 1099-Q on their tax return.

However, check if the CORRECTED box is checked on either of the Forms 1099-Q. If so, only report the corrected one according to the issued social security number.

Form 1098-T is reported on the return where the child is claimed as a dependent. Education credits cannot be claimed by dependents.

For more information, see: Guide to IRS Form 1099-Q: Payments from Qualified Education Programs.

Where do I enter a 1099-Q?

Re: 1099q

Tax_Customer1 — Wed, 31 Mar 2021 13:42:51 GMT

Thank you for your reply, Kathryn! So is it acceptable to leave off my return the 1099Q where my daughter is the recipient and use it instead on her tax return AND claim her university 1098T amounts on both of our returns?

The numbers:

1099Q Dad is recipient : $37,000 in Box 1

1099Q Daughter is recipient : $19,000 in Box 1

From TT Deductions Education: Expenses & Scholarships: $56, 618

My Federal Tax due when using both 1099Q: $4120

My Federal Tax due when leaving daughter's off: $1799

Re: 1099q

DMarkM1 — Wed, 31 Mar 2021 14:10:04 GMT

Yes, as @KathrynG3 mentions you should report your daughter's 1099Q on her return only. You are also correct that you will report the 1098T on your return for the Education credits/deduction and on your daughter's return for the possible excess scholarship income.