1099-Q & Pub 970

Forum|Forum|5 years ago
April 21, 2021
2 replies
30 views

I claim my daughter as a depended on my taxes, but it stated that I many need to include the 1099-Q earnings on my daughter's tax return. So, I was reading through the Pub 970 in regards to "Figuring the Taxable Portion of a Distribution" in Chapter 8 page 60-61. So, I do not have to include the full earnings amount, but I do not know how to update that amount within TurboTax and get it to refigure the amount of the refund??

AmyC

Level 15

The program will do the calculating for you. Enter the 1098-T first and all of your education expenses. Then enter the 1099-Q so the program has the numbers to do the math.

See my 529 example and information on 529 expense withdrawals.

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Carl

Level 11

Basically, the 1099-Q is reported on the tax return of the named beneficiary recipient on that 1099-Q, and only if the named beneficiary recipient is required to file a tax return.

If that is you the parent, I would recommend you enter the 1099-Q. Then, if it's not required to be reported, it won't be included in the e-filed tax return.

If the student is the named beneficiary, and if the student's income is more than $12,400 in 2020 (including the 1099-Q amount that exceeds qualified/allowed expenses) then the student reports it. Again, if it's required to be reported, then it will be included in the e-filed return. Otherwise, it will not be included.