Do I need to add form 1099Q to my daughters taxes, she started off in the fall in school, however had to leave school. We did get a refund and we reapplied to her 529
Do I need to add form 1099Q to my daughters taxes, she started off in the fall in school, however had to leave school. We did get a refund and we reapplied to her 529
The 1099-Q and the 1098-T are only informational documents. The numbers on them are not required to be entered onto your (or your student's) tax return. If you know none if it is taxable, just do not enter it. the TurboTax interview can cover it, but it can get confusing.
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."
"If a student receives a refund of qualified education expenses that were treated as paid by a QTP distribution, the student can recontribute these amounts into any QTP for which they are the beneficiary within 60 days after the date of the refund to avoid the need to figure the taxable part of the QTP distribution."
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