1099-Q

Forum|Forum|4 years ago
February 28, 2022
1 reply
2 views

I received a 1099-Q for college expenses. Am I supposed to enter in both the 529(A) and 529(C) figures in TurboTax?

Cynthiad66

Level 14

@MarkWiz72 - No. Enter the form 1099-Q based on the plan you have Determine where to enter by reviewing your 529 plan.

What is the difference between 529 and 529A?

What is a 529A plan? Similar to a 529 college savings plan, a 529A plan allows you to save for a specific purpose. Instead of strictly using the money for education-related expenses — as would be required with a 529 college savings plan — you can use the money for disability-related expenses

What is a 529 C?

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code

Form 1099-Q reports distributions and benefits from Coverdell education savings accounts and 529 plans. It's reported on the tax return of the person whose Social Security number is on the form.

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

Use this link for more information: Information on 529 plan

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.

Use this link for additional information: Qualified Tuition Plans - IRS

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MarkWiz72Author

Level 3

ok thank you. I noticed my return plummeted after entering my 1099-Q. am I being taxed that much on my distribution even though it was used for a qualified education expense?

ThomasM125

Level 15

Here's another wrinkle: the 1099-Q form is showing distribution for (2) semesters, since one was withdrawn for the fall 2021 semester and the 2nd was drawn in December 2021 for the spring 2022 semester. The 1098-T is only showing tuition for Fall 2021 - do I need to get an adjusted 1098-T? Also, where in TurboTax do I add room and board, since that amount isn't provided on the 1098-T?

You don't need to get an adjusted 1098-T form. When you enter the 1098-T form in TurboTax, under the box 1 entry you will see What if this is not what was paid to this school highlighted, press on that to enter that actual expenses.

Later on in that same section you will see a screen that says Did (student's name) Pay for Room and Board with a Scholarship or Grant? If you answer "yes" you can enter the room and board expenses.

@MarkWiz72

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