topic Re: 1099Q in Retirement tax questions

1099Q

pschack26 — Wed, 05 Mar 2025 17:09:40 GMT

How can I split up Qualified vs non qualified distributions from 1099Q ? Do I have report a 1099Q on tax return if have qualified expenses to cover ?

Re: 1099Q

KrisD15 — Wed, 05 Mar 2025 17:52:55 GMT

No, if the distribution was used for education expenses, such as Tuition, Fees, Books and Supplies, AS WELL AS ROOM AND BOARD, the 1099-Q needn't be entered, however those SAME expenses cannot be used towards an education credit.

If the distribution was used for Room and Board, and room and board was as much or more than the distribution, they would cancel each other out and the 1099-Q (as well as the room and board) would not be entered at all.

You also have the option of moving numbers around (within reason) to get a credit.

IRS Pub 970 explains more

Re: 1099Q

Bsch4477 — Wed, 05 Mar 2025 17:55:41 GMT

If all distributions were used for qualified education expenses you don’t have to report that form.

Re: 1099Q

pschack26 — Wed, 05 Mar 2025 20:05:16 GMT

Thank you for response

To be specific, My child has a 1099q with Gross Dist of $23k - $20k was used for qualified expenses. $3k was used for unqualified expenses and the earnings on the $3k was $2k. When I try to put the $23k in turbo tax I get a much higher tax as he should only pay tax on the $2k of earnings. Can I just report the $3k distribution ? There does not seem to be a way to divide the 1099q .

Thank you