1099-Q & Pub 970

[ccchristian]

I claim my daughter as a depended on my taxes, but it stated that I many need to include the 1099-Q earnings on my daughter's tax return.  So, I was reading through the Pub 970 in regards to "Figuring the Taxable Portion of a Distribution" in Chapter 8 page 60-61.  So, I do not have to include the full earnings amount, but I do not know how to update that amount within TurboTax and get it to refigure the amount of the refund??

[AmyC]

The program will do the calculating for you. Enter the 1098-T first and all of your education expenses. Then enter the 1099-Q so the program has the numbers to do the math.

See my 529 example and information on 529 expense withdrawals.

[Carl]

Basically, the 1099-Q is reported on the tax return of the named beneficiary recipient on that 1099-Q, and only if the named beneficiary recipient is required to file a tax return.

If that is you the parent, I would recommend you enter the 1099-Q. Then, if it's not required to be reported, it won't be included in the e-filed tax return.

If the student is the named beneficiary, and if the student's income is more than $12,400 in 2020 (including the 1099-Q amount that exceeds qualified/allowed expenses) then the student reports it. Again, if it's required to be reported, then it will be included in the e-filed return. Otherwise, it will not be included.