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Level 1

I am a US citizen. But I received 1042S, instead of 1099 Q. Can I use 1042 S in 1040 A tax preparation using TurboTax software?

I requested to Vanguard to correct the form (1099-Q) but they refused to do that because when I took the money from Education Saving Account, I had a foreign address. I wonder how to resolve this issue. How can I get the correct form (1099Q) and how can I use the 1042S form in 2017 tax return report (1040A) using Turbo Tax software? 

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Level 9

I am a US citizen. But I received 1042S, instead of 1099 Q. Can I use 1042 S in 1040 A tax preparation using TurboTax software?

TurboTax does not support the 1042S. If the entire distribution was from an education account, and you used it all for qualifying education expenses, you do not need to enter it, just keep a copy of the 1042S, as well as receipts for the education expenses paid, with your tax file. Do not use the education expenses applied to the distribution for an education credit. 

If you did not use the distributions for education expenses, you can enter the transactions as a 1099-Q, but you will need to know the earnings and basis of the distribution. If it is not listed on the 1042s, you will need to get those numbers from Vanguard. 

If tax was withheld, report that as "Other Taxes Paid"

  • Sign into your account and your return
  • Click Federal on the left side-bar
  • Click Deductions & Credits along the top
  • Scroll down to “Estimates and Other Taxes Paid” and click Show more
  • (you may need to click "show all Deductions & Credits first to open the list)
  • Scroll down to “Other Income Taxes” and click Start
  • Scroll down to “Withholding not already entered on a W-2 or 1099” and click Start

(please see screenshot below) 

[Edited 03.14.2018 |10:55AM]

3 Replies
Level 9

I am a US citizen. But I received 1042S, instead of 1099 Q. Can I use 1042 S in 1040 A tax preparation using TurboTax software?

TurboTax does not support the 1042S. If the entire distribution was from an education account, and you used it all for qualifying education expenses, you do not need to enter it, just keep a copy of the 1042S, as well as receipts for the education expenses paid, with your tax file. Do not use the education expenses applied to the distribution for an education credit. 

If you did not use the distributions for education expenses, you can enter the transactions as a 1099-Q, but you will need to know the earnings and basis of the distribution. If it is not listed on the 1042s, you will need to get those numbers from Vanguard. 

If tax was withheld, report that as "Other Taxes Paid"

  • Sign into your account and your return
  • Click Federal on the left side-bar
  • Click Deductions & Credits along the top
  • Scroll down to “Estimates and Other Taxes Paid” and click Show more
  • (you may need to click "show all Deductions & Credits first to open the list)
  • Scroll down to “Other Income Taxes” and click Start
  • Scroll down to “Withholding not already entered on a W-2 or 1099” and click Start

(please see screenshot below) 

[Edited 03.14.2018 |10:55AM]

Level 1

I am a US citizen. But I received 1042S, instead of 1099 Q. Can I use 1042 S in 1040 A tax preparation using TurboTax software?

Thanks for your answer. The withholding agent took 30% of entire distribution as federal tax withholding. So I wonder how to return all withheld because I used it all for qualifying all education expenses.
Level 9

I am a US citizen. But I received 1042S, instead of 1099 Q. Can I use 1042 S in 1040 A tax preparation using TurboTax software?

Enter the withholding in "Other Taxes Paid" see updated answer for navigation.