topic 1099-Q How to leave box 2 (Earnigns) and box 3 (Basis) blank? in Retirement tax questions

1099-Q How to leave box 2 (Earnigns) and box 3 (Basis) blank?

LTrinh — Sun, 15 Feb 2026 01:47:35 GMT

1099-Q gross distrubution, from the IRS (https://www.irs.gov/pub/irs-pdf/i1099q.pdf) "If earnings and basis are not reported for Coverdell ESA distributions, leave boxes 2 and 3 blank. Do not enter zero". Turbo Tax does not allow box 2 (Earnings) and box 3 (Basis) to be blank. Their sum must be equal to box 1 (Gross distribution). My 1099-Q does not report box 2 and box 3, how do I bypass this error. Also, this was allowed in last year (tax year 2024) Turbo Tax.

Re: 1099-Q How to leave box 2 (Earnigns) and box 3 (Basis) blank?

MaxA1 — Tue, 17 Feb 2026 03:22:31 GMT

You need to enter the FMV amount on Box 7 of the 1099-Q. If earnings and basis are not reported, these boxes can be blank, but the Fair Market Value (FMV) should be reported in box 7. If you don't have this information, you may need to reach out to the financial institution in charge of the account.

Re: 1099-Q How to leave box 2 (Earnigns) and box 3 (Basis) blank?

LTrinh — Tue, 17 Feb 2026 06:15:09 GMT

The program (Turbo Tax year 2025 premier desktop) step-by-step interview would not let me continue leaving box 2 and box 3 blank. How do I bypass this to get to step 7 to fill in FMV?

Re: 1099-Q How to leave box 2 (Earnigns) and box 3 (Basis) blank?

LTrinh — Tue, 17 Feb 2026 06:28:55 GMT

"but the Fair Market Value (FMV) should be reported in box 7", yes my 1099-Q has this info but where do I enter this FMV info into Turbo Tax?

Re: 1099-Q How to leave box 2 (Earnigns) and box 3 (Basis) blank?

KrisD15 — Tue, 17 Feb 2026 13:46:33 GMT

Can you please tell us what the distribution was used for?

IRS publications do state that if the distribution was used for education expenses, or if the account was properly rolled over, you should not report the 1099-Q, you should not enter it into the program.

It is true that the Education Section in TurboTax, specifically the 1099-Q section, has changed since last season. If the distribution is not taxable, the program seems to not want it entered.

Re: 1099-Q How to leave box 2 (Earnigns) and box 3 (Basis) blank?

LTrinh — Wed, 18 Feb 2026 00:51:34 GMT

The entire distribution was used for education expense. So I will delete the form 1099-Q. I wish Turbo Tax do a better job in handling this.