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January 29, 2023
Question

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

  • January 29, 2023
  • 2 replies
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2 replies

Hal_Al
Employee
January 29, 2023

No.  

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." 

 

 

KrisD15
January 29, 2023

No, not if it was recontributed to the account. 

 

According to the IRS:

"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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January 30, 2023

Does it matter if it wasn’t a full refund?  She received a partial refund that we recontributed back to the 529 plan.

Hal_Al
Employee
January 30, 2023

Q. Does it matter if it wasn’t a full refund?  She received a partial refund that we recontributed back to the 529 plan.

A. No. Tuition and other  expenses actually paid are Qualified Educational Expenses, for a 529 money, even if the student dropped out.