Hello,
One child is the recipient and received a 1099-Q. The distributions were used to pay for another child's (sibling's) tuition. The distributions do not exceed the sibling's qualified educational expenses. The issue is when I enter that the funds were used for "someone else not listed here" turbotax checks box 6 saying the recipient is not the designated beneficiary. This is true, but it's not going to match the 1099-Q because that box is not checked on the actual form. Also, I assume it will be taxable since the sibling didnt have their own 529/were not listed as a beneficiary.
What do i do in this case?
Since the 1099-Q was used to pay Qualified Education Expenses, you don't have to enter it in your return.
Keep it for your records.
Click this link for more info on 1099-Q.
Hi, sorry to reiterate, but I am a bit concerned about something else:
- I withdrew earnings as well as principal.
- The sibling was not listed as a beneficiary/funds were not rolled over into their account/they did not have their own account.
Are you sure I shouldn't be filing? Thanks
From the article:
"If annual distributions exceed your adjusted qualified education expenses, you may need to report some of the earnings reported in box 2 as income on your tax return and pay an additional 10 percent tax on it as well."
Since we cannot see your tax return in this forum, click this link to get Live Help from someone who can if you would like additional help.
Click here for a link to IRS Instructions for Form 1099-Q.