Do I have to file a 1099Q form?

egyouell · ‎June 4, 2019

I used funds from a 529 pre-paid tuition plan to cover my daughters school expenses for 2016. I requested distribution in the 'exact' amount owed the school after scholarships, grants and loans so I assume these are qualified education expenses. The payments were made directly to the school so my daughter received a 1099Q form with her SSN number. I am claiming her as a dependent on my return however I am filing a return for her as she has income over $6300 from a summer job. I don't believe I need to add the 1099Q to her return as per instruction on the form stating "non-taxable distributions are not required to be reported on your income tax return". I just want to be sure as a lot of the advice on Turbo Tax seems to indicate that I need to add this to my daughters return. I just want to file the 1040EZ for her as I will be claiming any education credits on my return.

egyouell · ‎June 4, 2019

So, I still don't understand, do I report the form on my tax return or my daughters? When I plug the numbers into her return it says she owes taxes and is counting this as unearned income.