How do I correct Form 1099-Q when using TT online

Forum|Forum|3 years ago
February 13, 2023
2 replies
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I added a 1099-Q to my 2022 tax return which corresponds with one of my daughter's two ESA accounts (let's call this ESA #2). Unfortunately TT is filling in the 1099-Q entry under the section labelled "Coverdell Education Savings Account (ESA) Activity Information value as of 12/31/2021" using a value from a different ESA apparently being tracked by TT from last year's 1099-Q (ESA #1). We did not take a distribution from ESA #1 in 2022 but TT is using last year's 1099-Q information which is irrelevent for tax year 2022.

I see no place during the TT interview screens to change this incorrect value. I REALLY don't want to delete this 1099-Q and start over since I know it can be a nightmare if you go out of sequence with the Education interviews. I don't see how deleting it will help, since I started with a new 1099-Q in the first place.

How do I fix this entry? I think I need to jump to the Form but don't know how.

TurboTax Self Employed Online

Best answer by Hal_Al

Q. There is no taxable income due to the 1099-Q this year. Why would it matter under these circumstances?

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. But, it will prepare a 1099-Q worksheet for your records.

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

Yes, the order you enter information in the Education Section is important.

Additionally, you are correct to not have the ending balance of one account interfere with a second account.

Please try to delete the 1099-Q in the TurboTax program

In TurboTax Online,

Click TAX TOOLS on the Left side bar

Then click TOOLS from the drop-down

this opens the Tools Center screen

Select "Delete a form"

Scroll through the list and delete any 1099-Q Forms

re-enter the 1099-Q you have for Tax Year 2022

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Pip_12_mnAuthor

Does it matter that the 1099-Q Form completed by TT is incorrect (value of ESA on 12/31/2021 is not correct) if I know this is the last year I will be enterring a 1099-Q on my return? My daughter graduates this year and will definitely not be my dependent in 2023. There is no taxable income related to the 1099-Q in 2022 (all expenses were qualified and tax free).

Why would it matter under these circumstances? I'm reluctant to delete a form in the Education section unless it's absolutely necessary but will if advised. I have a feeling TT wlll just re-enter the incorrect value from last year's 1099-Q as I suspect there is a bug in TT.