Edvest

Forum|Forum|5 years ago
April 20, 2021
1 reply
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My daughter received her edvest account for college, she paid her college in full but decided on pursuing a different career. The College kept most of the tuition and will not refund the additional money that was paid in advance therefore is unable to use it toward new college tuition. I do I file her 1099-Q

Thank you

Vincenza

Hal_Al

Employee

No. 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. 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.

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."

Tuition paid to, and kept by, the school is a qualified expense for a QTP distribution, even if the student did not finish the course.