529 Expenses and 1099Q Form

[dslsb]

I am listed as the FBO on my kids' 529 accounts. My adult college kids are filing independently (I'm not claiming them). Do I have to include the 1099Q on my taxes or should it be filed under each beneficiary/child?

[AmyC]

The 1099-Q may need to be filed with the student claiming the expenses - if there is a taxable amount.

If the 1099-Q was entirely used for room and board and other qualified education expenses, it is not taxable. IRS Publication 970, Tax Benefits for Education states that nontaxable distributions should not be entered.

The form 1099-Q and expenses covered should be kept in your tax folder, just in case the IRS asks.

[dslsb]

To confirm, if actual qualified education expenses meet or exceed the 529 distribution amount I do NOT include the 1099-Q from in my taxes or my student's filing. I simply maintain records of the distribution and expenses should the IRS ask for them. Correct?

[DavidD66]

Correct.  You do not have to report your 529 plan distributions reported on Form 1099-Q if your qualified education expenses meet or exceed the distribution amount.  The form in informational.  However, if you are claiming an education credit you cannot claim expenses paid for with the 529 funds.  In this case you may need to enter the 1099-Q so that the program can properly calculate the education credit.