We have a 529 account with Fidelity for my daughter's education expenses. She files her own taxes and is not listed as a dependent on our return.
All checks from the 529 are written directly to my daughter, yet she did not receive a 1099-Q. I as the owner of the account received it instead and the box "recipient is not the designated beneficiary" is checked. But 100% of the distributions went directly to my daughter.
Whose tax return is this 1099-Q reported? If it is on mine then why would I report it as a distribution that I never received. If it is on hers, how do I reconcile that she never received the 1099-Q? She did receive a 1098-T.
I am so confused by this.
Thanks for your help
Form 1099-Q only needs to be reported on the tax return of the person whose SSN is on the form if the withdrawal is more than the tuition paid in Box 1 of the 1098-T plus other adjusted qualified educational expenses. In that case, the earnings on the excess distribution would be taxable income.
First, determine if the Form 1099-Q needs to be reported on the tax return by comparing the withdrawal with the tuition paid on the 1098-T added to other qualified educational expenses. To find out what are qualified educational expenses, please review the Guide to Tax Form 1098-T: Tuition Statement. Please review the TurboTax articles Guide to IRS Form 1099-Q: Payments from Qualified Education Programs and What is IRS Form 1099-Q? for further details.
Secondly, enter the 1099-Q into TurboTax only if if the withdrawal exceeds the educational expenses on your tax return by following the directions below.
If you are using TurboTax Online:
If you are using TurboTax CD/Download:
EDIT 3/26/23|6:14PM
Form 1099-Q only needs to be reported on the tax return of the person whose SSN is on the form if the withdrawal is more than the tuition paid in Box 1 of the 1098-T plus other adjusted qualified educational expenses. In that case, the earnings on the excess distribution would be taxable income.
First, determine if the Form 1099-Q needs to be reported on the tax return by comparing the withdrawal with the tuition paid on the 1098-T added to other qualified educational expenses. To find out what are qualified educational expenses, please review the Guide to Tax Form 1098-T: Tuition Statement. Please review the TurboTax articles Guide to IRS Form 1099-Q: Payments from Qualified Education Programs and What is IRS Form 1099-Q? for further details.
Secondly, enter the 1099-Q into TurboTax only if if the withdrawal exceeds the educational expenses on your tax return by following the directions below.
If you are using TurboTax Online:
If you are using TurboTax CD/Download:
EDIT 3/26/23|6:14PM