How to enter one 1099Q form for multiple students (while mapping that to separate 1098T forms for each student)

Forum|Forum|2 years ago
February 5, 2024
2 replies
0 views

Greetings, I have 3 kids in college from which we're extracting money for all three from our Virginia 529 College Savings Plan (my account has three sub-accounts for each beneficiary). However, the Virginia 529 plan only provides ONE 1099-Q covering ALL expenses dispensed throughout 2023 for all 3 of our students. The problem is, Turbo Tax wants to associate the 1099-Q form to a specific student so that it can match it up to the 1098T form that student. I need a way to associate the one 1099-Q form to one or more kids (in my case, all three of my college students), so that the 1098T form that I get for each kid can be associated with the single 1099-Q form.

Ultimately, I know that the 1099Q is "not required to be reported on my income tax return" as long as I determine the taxability of any distribution. However, its nice to be able to include it in Turbo Tax, so that Turbo Tax will prepare a 1099-Q worksheet for my records (in case of an IRS inquiry).
Is there a solution to this that I am missing?

Best answer by Hal_Al

This is a workaround that you can use. Enter the 1099-Q. When asked who the student is answer: someone else not listed here (lying to TurboTax to get it to do what you want does not constitute lying to the IRS). Enter the students names when asked (or some alternate wording, e.g 3 student-dependents). A few screens later, you'll get one simple screen to enter expenses. Press Done at the 1099-Q summary screen, to get there.

KrisD15

The only solution in your case is to enter the 1099-Q as three different 1099-Q forms into the TurboTax program.

Going forward, I suggest you take the distributions in the child's (student beneficiary) name so that the institution WILL issue separate 1099-Q forms, one for each student.

This is really the procedure you should be using in order to avoid confusion about the tax liability of the withdrawals.

Making a transfer from the account directly to the school will also result in a 1099-Q issued to the student.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"