Any affet to mytax return for filling form 1099Q?

[blue-sea]

I create 529 for my nephew, In 2016 he started using fund for his qualify tuition and receive form 1099Q with my name as recipient.
my question is that since I'm not the one receive the money and the money is transferred directly from 529 account to my nephew college tuition. Do I have to fill the form and filling this form affect any portion of my tax return such as AMT tax?

[MichaelDC · Accepted solution]

Yes, you need to fill out the 1099-Q.  For 529 plans, there is an “owner” (usually the parent), and a “beneficiary” (usually the student dependent). The "recipient" of the 1099-Q can be either the owner or the beneficiary depending on where the money was sent. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient". If the student is the recipient, then the money is considered his money for the support test. The 1099-Q gets reported on the recipient's return. The recipient's name & SSN will be on the 1099-Q.

When you have a 1099-Q, it is extremely important that you work through the education section of the program in the order it is designed and intended to be used. If you do not, then there is a high probability that you will not be asked for room & board expenses, and you could therefore be TAXED on your 1099-Q funds.