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Level 2

Question

coverdell esa

4 replies
40 views

I have been contributing to my sons Coverdell ESA for years (with after tax money) and in 2019 I, the recipient, took a distribution of $2000 to pay for his college expenses.

The 1099Q I received shows box 1 (Gross Distributions) of $2000 and $0 in boxes 2 and 3. It also shows FMV of 22,100.

When I enter the info in TT, my refund goes down as if i am being taxed on the $2000 even though its for a qualified distribution.

Level 2

https://www.irs.gov/taxtopics/tc310

Alumni - Intuit

When you enter the 1099-Q, the program will ask if it was used for education expenses. You answer "Yes". It asks for whom and you would select "Someone not listed on this tax return". The distribution will not be taxed.

If your son IS your dependent and listed on your return, enter the 1099-Q, the student's 1098-T and report any additional expenses, such as room and board.

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siborg613Author

Level 2

Thanks for your response but I am still being taxed on the distribution.

Also, I received 1099Q's for all 4 of my children but only 3 are dependents on this return. Should the 4th put his 1099Q on his return?