1099Q

[draclvr]

We received a 1099Q for a qualified distribution for our grandson who is not a dependent.  Nowhere in my return was I asked if I received this form.  I even tried entering it manually and it just messed things up.  I finally just filed without it.  It's wasn't a large amount - like just over $1,000.  Did I screw up?

[FangxiaL]

It depends.

If you received Form 1099-Q you should have included it on your tax return. It doesn't mean you are going to pay more taxes. If you don't report it on your return, IRS might treat it (the earnings portion) as unreported income.

If you withdrew from the College Savings account as the recipient and then used the money to pay for your grandson's qualified educational expenses, you are considered as the recipient of the 1099-Q form.  

If you entered the 1099-Q form and answer the questions correctly, you can avoid the income tax and penalty on the earnings as long as the funds were used to pay for your grandson's qualified education expenses, even if he is not a dependent.

For future reference or if you'd like to consider amending your refund, follow these steps to enter Form 1099-Q:

1. Open or continue your return
2. Select Federal and then Deductions & Credits
3. Scroll down to the Education section under All tax breaks
4. Select Show more and then select Start or Revisit next to ESA and 529 qualified tuition programs (Form 1099-Q)
5. Follow the screens to enter your info.

[draclvr]

Thank you!  Exactly what I needed.  

[dragmot4096]

Where do I enter the information on the 1099Q into my Turbo Tax Premier program?

[MarilynG1]

Here's the steps to Enter a 1099-Q in TurboTax. 

For most qualified education program beneficiaries, the amounts reported on the 1099-Q aren’t reported on a tax return. Just keep it for your records. 

Here's more detailed info on Form 1099-Q to help you.

@dragmot4096