Under what circumstances will a designated beneficiary receive a Form 1099-Q assuming no disbursement checks were received by the student or sent to the college during the calendar year?

QRFMTOA · ‎January 17, 2023

The opening paragraph of Intuit's Guide to IRS Form 1099-Q: Payments from Qualified Education Programs states, "You will receive an IRS Form 1099-Q if someone has contributed money to a 529 plan or a Coverdell Education Savings Account (Coverdell ESA) and designates you as the beneficiary."

My mother opened a 529 savings account for my son 20 years ago and has been making 2-4 contributions per year ever since, but he never received any Forms 1099-Q until he requested a disbursement check be sent to his college bursar. Furthermore, he only received a Form 1099-Q in those years during which he requested at least one disbursement check be sent to either his college bursar or to himself.

Thanks!

Hal_Al · ‎January 17, 2023

"You will receive an IRS Form 1099-Q if someone has contributed money to a 529 plan or a Coverdell Education Savings Account (Coverdell ESA) and designates you as the beneficiary."

That's poorly worded. No 1099-Q is sent out when contributions are made. The 1099-Q is sent only when a distribution is made.

Q. Under what circumstances will a designated beneficiary receive a Form 1099-Q assuming no disbursement checks were received by the student or sent to the college during the calendar year?

A. None.

The money can remain in most 529 plans forever. The owner (the grandparent, in this case) can ask for a distribution, at any time and can ask for it either to be sent to her or the beneficiary (your son). Whoever gets the distribution will also get the 1099-Q and be responsible for taxes and penalty, if any. As you apparently know, if the money goes directly the the school, the beneficiary is considered the "recipient" (of the distribution)and gets the 1099-Q.

_______________________________________________________________________________

Qualified Tuition Plans (QTP 529 Plans) Distributions

General Discussion

It’s complicated.

For 529 plans, there is an “owner” (the grandparent in this case), and a “beneficiary” (usually the student dependent). The "recipient" of the distribution can be either the owner or the beneficiary depending on who the money was sent to. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient". The distribution will be reported on IRS form 1099-Q.
The 1099-Q gets reported on the recipient's return.** The recipient's name & SS# will be on the 1099-Q.
Even though the 1099-Q is going on the student's return, the 1098-T should go on the parent's return, so you can claim the education credit. You can do this because he is your dependent.

You can and should claim the tuition credit before claiming the 529 plan earnings exclusion. The educational expenses he claims for the 1099-Q should be reduced by the amount of educational expenses you claim for the credit.
But be aware, you can not double dip. You cannot count the same tuition money, for the tuition credit, that gets him an exclusion from the taxability of the earnings (interest) on the 529 plan. Since the credit is more generous; use as much of the tuition as is needed for the credit and the rest for the interest exclusion. Another special rule allows you to claim the tuition credit even though it was "his" money that paid the tuition.
In addition, there is another rule that says the 10% penalty is waived if he was unable to cover the 529 plan withdrawal with educational expenses either because he got scholarships or the expenses were used (by him or the parents) to claim the credits. He'll have to pay tax on the earnings, at his lower tax rate (subject to the “kiddie tax”), but not the penalty.

Total qualified expenses (including room & board) less amounts paid by scholarship less amounts used to claim the Tuition credit equals the amount you can use to claim the earnings exclusion on the 1099-Q.
Example:
$10,000 in educational expenses(including room & board)

-$3000 paid by tax free scholarship***

-$4000 used to claim the American Opportunity credit

=$3000 Can be used against the 1099-Q (usually on the student’s return)

Box 1 of the 1099-Q is $5000

Box 2 is $2800

3000/5000=60% of the earnings are tax free; 40% are taxable

40% x 2800= $1120

You have $1120 of taxable income

**Alternatively; you can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. Again, you cannot double dip! When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry.

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."

***Another alternative is have the student report some of his scholarship as taxable income, to free up some expenses for the 1099-Q and/or tuition credit. Most people come out better having the scholarship taxable before the 529 earnings.

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AmyC · ‎January 19, 2023

I believe you stated 2021 tax return, not 2022. Only the 2022 can be filed electronically with Turbo Tax. Firms that prepare the prior-year return can file it electronically, just not self-prepared returns.

As to your 1098-T and 529 information, there is a $500 difference. You note that your son's room and board is less that college's published expectations. Those kids eat a lot of food and I wouldn't be surprised if he met those numbers! Either way, you can use the numbers the college published instead of your own.

This may remove the extra $500 so that it all evens out. Then the 1099-Q is just tucked into a tax folder and it does not need to be entered. If not, the student claims $500 income on his return. Unless, you can claim the AOTC college credit and choose to claim it.

Whoever claims the student , claims the 1098-T and college credit. If your income allows you to claim the college credit, you would be better to say that $4,000 of it went to your son. Then, he would claim that income on his return. If you can't claim the credit, there is no need to add income to his return.

Please see another post of mine here for more details of the 529 exceeding college expenses. Also, see Pub 970 for more information on the AOTC credit. For 2022, the income phaseout is $80,000-$90,000 or for MFJ $160,000-$180,000.

@Hal_Al is correct as always and using the $4,000 for college credit which normally yields a much better tax return.

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Hal_Al · ‎January 25, 2023

This is fairly easy: just don't report the 1099-Q, at all. You have sufficient expenses, whether or not you claim the AOC. You have sufficient expenses even ignoring the issue of the refund. He doesn't need to enter the 1098-T either. He doesn't need to file a tax return, unless he needs a refund of withholding from the job (unlikely).

I asked for just the school's board charge, as that is the conservative approach. Some argue that you can use both the room and board charge, when the student lives at home, especially if you charge him rent (or "sign a promissory note"). Either way, the numbers are small enough that it's not gonna make a difference.

You said: " I’m thinking neither of us should take the AOC until his education expenses increase in subsequent years".

That's usually good advice. But the numbers, in this case, may support the "bird in hand" philosophy. The maximum AOC is $2500 based on $4000 QEE. But the calculation is heavy on the first $2000 QEE. $2794 QEE ($2240 tuition + $554 books) gets you an AOC of $2198. Even if you use those expenses for the AOC, his other expenses are still enough for the 1099-Q, and it does not need to be filed.

Him claiming the AOC, on his own tax return, is not an option until he turns 24.

The $4325 (in box 1 of the 10999-Q) is not income. It's the $2444 in box 2 that's potentially income. And even when it is, it's only a fraction, of that, that is taxable.

View solution in original post

Anonymous_ · ‎January 17, 2023

Sta tuned. I will page Champ @Hal_Al

QRFMTOA · ‎January 17, 2023

Thanks!

Hal_Al · ‎January 17, 2023

"You will receive an IRS Form 1099-Q if someone has contributed money to a 529 plan or a Coverdell Education Savings Account (Coverdell ESA) and designates you as the beneficiary."

That's poorly worded. No 1099-Q is sent out when contributions are made. The 1099-Q is sent only when a distribution is made.

Q. Under what circumstances will a designated beneficiary receive a Form 1099-Q assuming no disbursement checks were received by the student or sent to the college during the calendar year?

A. None.

The money can remain in most 529 plans forever. The owner (the grandparent, in this case) can ask for a distribution, at any time and can ask for it either to be sent to her or the beneficiary (your son). Whoever gets the distribution will also get the 1099-Q and be responsible for taxes and penalty, if any. As you apparently know, if the money goes directly the the school, the beneficiary is considered the "recipient" (of the distribution)and gets the 1099-Q.

_______________________________________________________________________________

Qualified Tuition Plans (QTP 529 Plans) Distributions

General Discussion

It’s complicated.

For 529 plans, there is an “owner” (the grandparent in this case), and a “beneficiary” (usually the student dependent). The "recipient" of the distribution can be either the owner or the beneficiary depending on who the money was sent to. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient". The distribution will be reported on IRS form 1099-Q.
The 1099-Q gets reported on the recipient's return.** The recipient's name & SS# will be on the 1099-Q.
Even though the 1099-Q is going on the student's return, the 1098-T should go on the parent's return, so you can claim the education credit. You can do this because he is your dependent.

You can and should claim the tuition credit before claiming the 529 plan earnings exclusion. The educational expenses he claims for the 1099-Q should be reduced by the amount of educational expenses you claim for the credit.
But be aware, you can not double dip. You cannot count the same tuition money, for the tuition credit, that gets him an exclusion from the taxability of the earnings (interest) on the 529 plan. Since the credit is more generous; use as much of the tuition as is needed for the credit and the rest for the interest exclusion. Another special rule allows you to claim the tuition credit even though it was "his" money that paid the tuition.
In addition, there is another rule that says the 10% penalty is waived if he was unable to cover the 529 plan withdrawal with educational expenses either because he got scholarships or the expenses were used (by him or the parents) to claim the credits. He'll have to pay tax on the earnings, at his lower tax rate (subject to the “kiddie tax”), but not the penalty.

Total qualified expenses (including room & board) less amounts paid by scholarship less amounts used to claim the Tuition credit equals the amount you can use to claim the earnings exclusion on the 1099-Q.
Example:
$10,000 in educational expenses(including room & board)

-$3000 paid by tax free scholarship***

-$4000 used to claim the American Opportunity credit

=$3000 Can be used against the 1099-Q (usually on the student’s return)

Box 1 of the 1099-Q is $5000

Box 2 is $2800

3000/5000=60% of the earnings are tax free; 40% are taxable

40% x 2800= $1120

You have $1120 of taxable income

**Alternatively; you can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. Again, you cannot double dip! When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry.

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."

***Another alternative is have the student report some of his scholarship as taxable income, to free up some expenses for the 1099-Q and/or tuition credit. Most people come out better having the scholarship taxable before the 529 earnings.

QRFMTOA · ‎January 17, 2023

Thank you very much!!!

Hal_Al · ‎January 17, 2023

If your son has completed school, the 529 money can be distributed (at the owner's [Grandparent]) option) but the earnings will be taxed and a 10% penalty (for a non qualified distribution) added.

Another option is for the owner to change the beneficiary to another family member, typically the current beneficiary's younger siblings. First cousins are also eligible.

Reference: https://www.savingforcollege.com/article/how-to-transfer-529-plan-funds-to-a-sibling

QRFMTOA · ‎January 19, 2023

In the spirit of “I think I heard what you said. May I repeat what I heard, in my own words, so you can correct anything I misunderstood or missed?”...

May I ask you to review an example using numbers and a format that is easy for me to process, correct my errors, and my questions, which at times may be trivial?

My example will use Forms 1098-T and 1099-Q and the information below.

Are following statements true for me?

Form 1099-Q is not filed with my joint tax return.
Some of the numbers on Form 1099-Q will be used to calculate some numbers that will be reported on my tax return or its filed forms per my example below.
Some of the numbers on Form 1099-Q will be reported on my tax return or its forms per my example below.

Are following statements true for my son?

Form 1099-Q is filed with my son’s tax return.
Some of the numbers on Form 1099-Q will be used to calculate some numbers that will be reported on son’s tax return or its filed forms. Note: I am not far enough along to ask for confirmation of my son's numbers.
Some of the numbers on Form 1099-Q will be reported on my son’s tax return or its forms. Note: I am not far enough along to ask for confirmation my son's numbers.

Are following statements true for me?

Form 1098-T is filed with my joint tax return.
Some of the numbers on Form 1098-T will be used to calculate some numbers that will be reported on my tax return or its filed forms per my example below.
Some of the numbers on Form 1099-Q will be reported on my tax return or its forms per my example below.

Are following statements true for my son?

Form 1099-Q is not filed with my son’s tax return.
Some of the numbers on Form 1099-Q will be used to calculate some numbers that will be reported on son’s tax return or its filed forms. Note: I am not far enough along to ask for confirmation of my son's numbers.
Some of the numbers on Form 1099-Q will be reported on my son’s tax return or its forms. Note: I am not far enough along to ask for confirmation of my son's numbers.

1098-T; Box 1	$50,000	All expenses included in this amount were 529 qualified education expenses.
Room and Board*	$7,500	His off-campus room and board was less than the room and board reported in the college’s published Off-Campus COA.
Required Textbooks*	$500	He purchased all of his required textbooks at an independent bookstore and saved a substantial amount of money.
School Supplies*	$250	He purchased $250 of necessary, but not required, school supplies from local vendors.
Computer Equipment*	$750	He purchased a $750 used laptop based on his department’s published recommended specs since his old laptop died.
Total 529 QEE	$59,500
Scholarships	$40,000
Net 529 QEE	$19,500
Gross 529 Distributions	$20,000	Note: He purchased a $500 desk at the beginning of the spring semester, submitted the invoice to his grandmother for 529 reimbursement, she did and requested the disbursement check be sent directly to him, he deposited the check, and spent the $500 playing video games and golfing. This entire affair was only discovered when I reviewed his checking account in December.
Non-QEE Expenses	$500	These funds were not returned to the plan manager.
Out of Pocket QEE	de minimis

* Note the following

Some of these QEE were paid from his savings, submitted for 529 reimbursement, and paid directly to him.
At times during the year, his cash flow required me to advance him various amounts of money, for which he reimbursed when he received his 529 disbursement checks.
I paid for those QEE he did not pay for and he reimbursed me after receiving the corresponding disbursement checks.
His grandmother did not request any disbursement checks be sent to her.

Are any of the bullet points actionable in addition to the content of this example?

My Joint Form 1040 – Form 8863 – Part III American Opportunity Credit

27	Adjusted QEE (see instructions). Don't enter more than $4,000	$4,000
28	Subtract $2,000 from line 27. If zero or less, enter -0-	$2,000
29	Multiply line 28 by 25% (0.25)	$500
30	If line 28 is zero, enter the amount from line 27. Otherwise, add $2,000 to the amount on line 29 and enter the result. Skip line 31. Include the total of all amounts from all Parts III, line 30, on Part I, line 1	$2,500

I don’t understand how to apply the following. I would really appreciate it if you can help me on this.

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution.

Likewise, I don’t understand how to apply the following and, again, I would really appreciate it if you can help me on this.

3,000/5,000 = 60% of the earnings are tax free; 40% are taxable

40% x 2,800 = $1,120

You have $1,120 of taxable income

Thank you so very much for your assistance with this. I am afraid I would be lost without your help!

QRFMTOA · ‎January 19, 2023

I am in a world of hurt... I am trying to file my 2021 taxes so I can file FAFSA by the 21st. That's on me.

Anything you do to help me with the questions in my last post would be incredibly appreciated.

Thank you!

How can I show my appreciation for your assistance?

I would be paying my accountant a crap load of money, if he could even help.

I would be delighted to demonstrate my appreciation directly to you or provide a donation to your favorite charity.

Please please let me know how?

Hal_Al · ‎January 19, 2023

Here's a first draft (I haven't double checked it).

Are following statements true for me?

Form 1099-Q is not filed with my joint tax return.
Correct. Your son, the student, is the recipient.

Some of the numbers on Form 1099-Q will be used to calculate some numbers that will be reported on my tax return or its filed forms per my example below.
No. You use all the QEE you need (usually $4000) to claim the education credit. Your son makes the adjustments for what you claimed on his TurboTax works sheets, reporting any taxable portion of the 1099-Q.

Some of the numbers on Form 1099-Q will be reported on my tax return or its forms per my example below.
No.

Are following statements true for my son?

Form 1099-Q is filed with my son’s tax return.
Yes, but Not exactly.

Some of the numbers on Form 1099-Q will be used to calculate some numbers that will be reported on son’s tax return or its filed forms. Note: I am not far enough along to ask for confirmation of my son's numbers.
Yes, that's a more accurate statement

Some of the numbers on Form 1099-Q will be reported on my son’s tax return or its forms. Note: I am not far enough along to ask for confirmation my son's numbers.
Again, not exactly. The numbers will be used to calculate the taxable portion of the earnings. Only the taxable amount will be reported on the tax forms (Schedule 1).

Are following statements true for me?

Form 1098-T is filed with my joint tax return.
Yes, it is entered in TurtboTax to calculate the Tuition Credit (assuming your son is your dependent and your income is not too high)

Some of the numbers on Form 1098-T will be used to calculate some numbers that will be reported on my tax return or its filed forms per my example below.
Yes

Some of the numbers on Form 1099-Q will be reported on my tax return or its forms per my example below.
No. Nothing about the student's 1099-Q is entered on your return or in your TT program

Are following statements true for my son?

Form 1099-Q is not filed with my son’s tax return.
No, unless he still has sufficient QEE, to cover the entire distribution, after you use $4000 for the credit

Some of the numbers on Form 1099-Q will be used to calculate some numbers that will be reported on son’s tax return or its filed forms. Note: I am not far enough along to ask for confirmation of my son's numbers.
Yes, assuming some of the 1099-Q is taxable.

Some of the numbers on Form 1099-Q will be reported on my son’s tax return or its forms. Note: I am not far enough along to ask for confirmation of my son's numbers.
No. They will only be used in the calculations (on the TT worksheets

I don’t understand how to apply the following. I would really appreciate it if you can help me on this.

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution.

That's simply a reference to the IRS instructions that proves the previous statement: You don't have to enter the 1099-Q, at all, if your net QEE is more than the distribution amount.

Likewise, I don’t understand how to apply the following and, again, I would really appreciate it if you can help me on this.

3,000/5,000 = 60% of the earnings are tax free; 40% are taxable

40% x 2,800 = $1,120

You have $1,120 of taxable income

In your example, $500 (20,000 - 19,500 = 500) of your 529 plan distribution in non qualified.

500 / 20,000 = 2.5% of the earnings are taxable

0.025 x 13, 000 = $325 of taxable income.

But that doesn't account for the $4000 you use for the tuition credit. He actually has $4500 non qualified distribution.

4500 / 20,000 =22.5% of the earnings are taxable

0.225 x 13,000 = $2925 of taxable income on the student's return.

Before reporting that you need to look at the option of the student reporting $4500 of taxable scholarship instead. Taxable scholarship is earned income for purposes of a student-dependent's standard deduction. If that $4500 is his only income, he will pay no income tax. However $2925 of taxable 529 distribution (unearned income) will be taxed and trigger the kiddie tax).

Provide actual numbers for more specific advice

AmyC · ‎January 19, 2023

I believe you stated 2021 tax return, not 2022. Only the 2022 can be filed electronically with Turbo Tax. Firms that prepare the prior-year return can file it electronically, just not self-prepared returns.

As to your 1098-T and 529 information, there is a $500 difference. You note that your son's room and board is less that college's published expectations. Those kids eat a lot of food and I wouldn't be surprised if he met those numbers! Either way, you can use the numbers the college published instead of your own.

This may remove the extra $500 so that it all evens out. Then the 1099-Q is just tucked into a tax folder and it does not need to be entered. If not, the student claims $500 income on his return. Unless, you can claim the AOTC college credit and choose to claim it.

Whoever claims the student , claims the 1098-T and college credit. If your income allows you to claim the college credit, you would be better to say that $4,000 of it went to your son. Then, he would claim that income on his return. If you can't claim the credit, there is no need to add income to his return.

Please see another post of mine here for more details of the 529 exceeding college expenses. Also, see Pub 970 for more information on the AOTC credit. For 2022, the income phaseout is $80,000-$90,000 or for MFJ $160,000-$180,000.

@Hal_Al is correct as always and using the $4,000 for college credit which normally yields a much better tax return.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

QRFMTOA · ‎January 19, 2023

@Hal_Al

@AmyC

AmyC, Thanks for the time and effort to share such valuable advice. Thanks!

I believe you stated 2021 ... Firms that prepare the prior-year return can file it electronically, just not self-prepared returns.

Correct. My accountant is a great guy. Very reasonable. May very well file electronically for me at a very nominal charge and perhaps even no charge. I am sure, correct me if I’m wrong, that filing electronically is better than me submitting it by Federal Express.

As to your 1098-T and 529 information, there is a $500 difference. You note that your son's room and board is less than the college's published expectations. Those kids eat a lot of food and I wouldn't be surprised if he met those numbers! Either way, you can use the numbers the college published instead of your own.

This may remove ... choose to claim it.

Great advice. Thanks, again!

Whoever claims the student [I am not sure what is meant by claims the student.], claims the 1098-T and college credit [The AOC, I assume.]. If your income allows you to claim the college credit, it would be better to say that $4,000 of it went to your son. [I do not have any QEE. My son has all of his QEE. In this circumstance, how will my income allow me to claim the AOC?] Then, he would claim that income [Is this income the amount in Box 1 of Form 1099–Q minus his QEE when his QEE is less than Box 1] on his return. If you can't claim the credit, there is no need to add income to his return.

My next task will be to read your post for more details about the 529 exceeding college expenses.

QRFMTOA · ‎January 19, 2023

@Hal_Al

@AmyC

Please do misinterpret my delayed reply to your "Here's a first draft." post.

When your post arrived, I began reading it carefully so I could understand everything you were saying and act on those things I did understand. While reading and acting, I recruited my wife to assist me in tasks with well-defined objectives so she could actually make meaningful contributions and feel like she accomplished something. When AmyC's post arrived, I began reading and acting on both. Meanwhile, my wife was very productive and she consumed a fair amount of time giving her more and more projects. The two posts had so much good advice, I could not stop acting on what was learning. At some point, I realized if I do not reply quickly, everyone will be asleep before I responded to anyone. I don't why, but I tackled the two posts on a "Last In-First Out" basis. While I was responding to AmyC, I continued entering data in TT and supporting my wife. I finally finished my reply to her about 20 minutes ago and will now begin creating my response to you.

I really appreciated your suggestion that I provide actual numbers for more specific advice. I decided before I take any more of your time, I wanted to extract everything I could from your first draft so I would not have to ask for as much time as I all ready had. When I received AmyC's post, I wanted to maximize the new information so as to reduce my need for assistance.

Thanks, again, for all you have done for me, If I cannot reply before I go to work at 9AM, I will certainly get back to you sometime after I get home at 2PM.

Hal_Al · ‎January 20, 2023

Usual info needed for more specific help:

Are you the student or parent.
Is the student the parent's dependent.
Box 1 of the 1098-T
box 5 of the 1098-T
Any other scholarships not shown in box 5
Does box 5 include any of the 529/ESA plan payments (it should not)
Is any of the Scholarship restricted; i.e. it must be used for tuition
Box 1 of the 1099-Q
Box 2 of the 1099-Q
Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)?
Room & board paid. If student lives off campus, what is school's R&B charge. If the student lives at home, only the school's board charge for on campus students.
Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers (a desk is not a qualified expense)
How much taxable income does the student have, from what sources
Are you trying to claim the tuition credit (are you eligible)?
Is the student an undergrad or grad student?
Is he over age 23?

You stated "I do not have any QEE. My son has all of his QEE". It does not matter who "has" the QEE. It only matters that there was QEE. If the student is your dependent, you're allowed to spread the QEE between you.

Hal_Al · ‎January 20, 2023

If you're having your accountant file your return, this can probably be simplified. He can make the necessary entries right on the tax forms. The hard part is entering it all in TurboTax.

Based on your example above and assuming your son has no other significant income:

1. You enter $4000 of QEE on form 8863, of your return, to claim the American Opportunity Credit.

2. You son claims $4500 of taxable scholarship income on Schedule 1 (line 8r [new entry point for 2022]), of his return.

3. He does NOT report the 1099-Q, at all. None of it is taxable, because $4500 of QEE previously covered by tax free scholarship is now being covered by the 529 distribution, and the 529 distribution is now a fully qualified distribution.

QRFMTOA · ‎January 25, 2023

@Hal_Al @AmyC

Only because of your help, I was able to dodge the bullet and get my son's FAFSA submit before the deadline.

I have gather all of the information I should have provided you in the first place and am ready to share the actual numbers for more specific help.

Most everything is in or gathered in PDF files. May I sanitize them and send them to you as an attachment?

I will start working on your list hoping PDF files are OK.

Thanks, again, for all your help!

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Under what circumstances will a designated beneficiary receive a Form 1099-Q assuming no disbursement checks were received by the student or sent to the college during the calendar year?