topic 10-99Q For catholic school being taxed in TurboTax in Deductions & credits

10-99Q For catholic school being taxed in TurboTax

Rcgus — Mon, 09 Mar 2026 05:26:52 GMT

I withdrew just under the max amount of $10000.00 for Catholic School tuition in 2021. I was the "recipient" of the payment and she is the "beneficiary". Turbo Tax is taxing the distribution in the amount of $472.00. If I change the recipient to my daughter, I'm not taxed. However, I cant do that because its contrary to the 10-99Q. It shouldn't matter since I am the account owner, the distribution should not be taxed, correct? What am i missing here? Has anyone else seen this? Thank you in advance.

Re: 10-99Q For catholic school being taxed in TurboTax

FangxiaL — Sun, 20 Feb 2022 23:13:18 GMT

After you enter the amount used to pay for your dependent's tuition, the taxable amount should be removed from the list of your other income.

To enter 1099-Q properly, follow these steps:

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 then select Start or Revisit next to ESA and 529 qualified tuition programs (Form 1099-Q)
Follow the screens to enter your info.
Click Done on the screen that says Form 1099-Q Summary
On the following screen, select Attended high school in 2021
Enter the school expenses on a screen that follows.

If your expenses is at least the same as the distribution, there should not be any taxable earnings.

Re: 10-99Q For catholic school being taxed in TurboTax

Rcgus — Mon, 21 Feb 2022 12:59:25 GMT

Ok. That worked. Not very straight forward but thank you. This year I'll make her the recipient. Seems much easier to process on the return.

Thanks again!!

Re: 10-99Q For catholic school being taxed in TurboTax

Hal_Al — Mon, 21 Feb 2022 13:51:16 GMT

Don't make her the recipient next year. The interview is the same in the case of a High school student. You'll just have another return to prepare (maybe) and the "kiddie tax" may kick in.

But the real solution is: just ignore the 1099-Q.

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses 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.

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."

Re: 10-99Q For catholic school being taxed in TurboTax

Rcgus — Mon, 21 Feb 2022 16:46:21 GMT

Got it. Thank you. Much appreciated.