My daughter has already filed her taxes unaware she would receive a 1099Q. Her tuition/educational expenses are more than the distribution in Box 1, so it is my understanding that she does not need to report the 1099Q on her taxes. Can someone please confirm? She is hoping she does not need to do an amendment to her taxes just to add this 1099Q information, that isn't necessary anyway? THANKS!!!
She does not need to amend and does not need to report for two reasons:
1. The Q should not be filed when expenses exceed income
If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions at IRS Publication 970, Tax Benefits for Education.
2. Amended returns should only be filed if there is a tax difference - this is a newer one