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March 2, 2023
Question

How can I get turbo tax to reflect that the funds on the 1099Q were not distributed to me but rolled over to another 529 plan?

  • March 2, 2023
  • 1 reply
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I rolled over funds from one 529 to another within the same custodian so it was not a trustee-to-trustee transfer. I did not distribute the funds to myself. but there is no way to indicate this on turbo tax.

1 reply

Hal_Al
Employee
March 2, 2023

Just don't enter the 1099-Q. 

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, or you have a rollover.  When the box 1 amount on form 1099-Q is fully covered by expenses or was rolled over, TurboTax (TT) will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip! 

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." 

 

That said, there is a place to show a roll over, in the interview.  Even if the "Trustee-to-trustee rollover" box is not checked on the 1099-Q, TT will still ask if you rolled it over.