1099-Q

Forum|Forum|5 years ago
February 14, 2021
2 replies
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I have one 1099-Q form from the IRS that has 16 different account numbers. TurboTax Online will only allow me to enter 10 account numbers before it bounces me out and says I'm all done. How can I add the additional 6 accounts?

Best answer by Hal_Al

My apologies that I'm confusing you.

There were no expenses or monies withdrawn from any of the accounts. All we did is roll/transfer four 529 accounts for our 4 grandchildren from one financial institution (American Funds) to another (Fidelity).

The original institution, American Funds, sent us one 1099-Q with 16 entries for the 16 funds we rolled over to Fidelity:

- Our 3 granddaughter's accounts have 5 funds each (shows as 15 lines on the 1099-Q).

- Our grandson has 1 fund (shows as 1 line on the 1099-Q).

Each of the 16 lines show the account numbers, gross distribution, earnings, basis, trustee to trustee transfer marked with X's, the distribution type and check if the recipient is not the designated beneficiary.

My issue is that Turbo Tax will only allow me to enter the information of 10 of the lines into Turbo Tax.

If I understand your last response correctly, since there were no taxable distributions, we don't need to report it on our income tax return.

If my understanding is incorrect, then how can I enter the additional 6 lines of fund transfer information into Turbo Tax if Turbo Tax database only allows 10 lines of information?

I can't thank you enough for trying to understand my issue and responding to it.

Just don't enter the 1099-Q in TurboTax. When the box 1 amount on form 1099-Q is fully covered by expenses, or ROLLED OVER to another education account, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records (the work sheet isn't going to tell you anything that will help with an IRS inquiry). You'll need to show it went to another trustee.

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."

Otherwise, you will need to "double up". Add the numbers together so you make fewer entries.

Hal_Al

Employee

The 529 Plan account number(s) is not needed to file your tax return. Leave them off.

GinetteCAuthor

Good morning. My apologies for the bad wording in my question. Please let me try again. I have one 1099-Q with 16 line items, all with different fund numbers, gross distribution, earnings, and basis amounts. The Turbo Tax software allows me to enter a maximum of 10 line items only. Once the 10 line is entered, the system doesn't give me an error, it just won't allow me to enter the additional 6 entries from my 1099-Q. Looking at the attachments, it shows 10 out of 10 lines used but again, I have a total of 16 lines to enter.

I've tried both the online and desktop versions of the software with the same results. Customer Service call 1 says I need to manually handwrite my information on forms and mail it in. Customer Service call 2 says this is not a software issue even though there is no documentation anywhere that I can only enter 10 line items. Customer Service call 3 says it is a software issue that has been known for over a year but was not resolved. She said I should be able to enter all 16 line items into Turbo Tax with no issue but saw for herself that the system doesn't allow it. She said it may or may not be fixed before my taxes are due.

I'm not sure what to do at this point. Should I enter the initial 10 lines into Turbo Tax and add 6 paper forms (OMB No. 1545-1760) to cover the additional 6 line items and then mail everything in? This is so frustrating. Thank you for your quick reply.

Hal_Al

Employee

What you are saying still isn't clear. The term "16 line items" doesn't make sense.

It sounds like your fund administrator is trying to report multiple separate distributions on one 1099-Q.

What's on your 16 line items? Do not provide personal info like name address or SS#.

Here's what a 1099-Q looks like: https://www.irs.gov/pub/irs-pdf/f1099q.pdf

christadmyers

There is no form or format on your software for 1099-Q and 1098-T, how do I add this information?

Hal_Al

Employee

As previously stated, above, there is no IRS form that the numbers on the 1099-Q are entered on to. You enter the 1099-Q and your expenses and TurboTax (TT) calculates the taxable amount. It's complicated. If you know none of the 1099-Q is taxable, just don't enter it.

If you are claiming a tuition credit, TT will calculate that on form 8863.

Q. How do I add this information?

A. In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

--Education Expenses (1098-T). Follow the interview

And/Or

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits