Question

1099-Q and 1098-T questions

Forum|Forum|7 years ago
June 5, 2019
1 reply
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The 1099-Q shows me as the beneficiary/recipient. The box for #6 is checked. The distributions are less than the college education expenses paid for my children. However, the earnings from the distributions are being taxed. It looks like if I do not show the box for #6 checked, the earnings will not be taxed; but that would not be accurate according to the 1099-Q. How can I correct this? The earnings should not be taxed.

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KrisD15

Box 6 is checked because you received the funds and you are not the beneficiary. Only the student can be a beneficiary, once a taxpayer turns 30, they cannot be a beneficiary.

The earnings are taxed because of the way the 1099-Q was reported - you, (the account owner) took the distributions, not the beneficiary.

You can ask the trustee to reissue the 1099-Q in the student's name, or ask the student if they received a copy in their name.

To avoid this situation in the future, have distributions for education expenses go directly to the school, or have the student make the distribution.

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