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January 29, 2020
Question

It says I can't file yet due to a recent law passed by Congress regarding Qualified tuition program distributions. What does this mean?

  • January 29, 2020
  • 2 replies
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2 replies

SusanY1
January 29, 2020

You will see this message when you enter Form 1099-Q.   A change in tax law very late in the year changed the way previously taxable distributions are handled for some taxpayers. 

 

If your distribution from a Coverdell ESA or 529 College Savings plan was used only for qualifying education expenses, you are not affected by the change in the tax law, and you should remove Form 1099-Q from TurboTax and file your tax return.  The IRS does not require the form to be included on a tax return unless there are taxable distributions. 

 

To remove the form:

  1. Login to your account at TurboTax.com.
  2. Click on the Search Tool (magnifying glass) in the upper right of TurboTax.
  3. Enter the search term 1099Q.
  4. Click on the Jump to link that appears.
  5. On the Form 1099-Q Summary screen, click Delete beside the form.  
  6. Click Done at the bottom of the screen.

 

If all of your distribution was not used for qualifying education expenses, you either can remove the form, as described above, and amend your return once the program has been updated or you can wait to file until the updates are made.  It is not known at this time when those updates will be ready.  

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February 17, 2020

Will TT update me when these updates are ready?

DaveF1006
February 19, 2020

This should be ready now.because it has been passed by congress.  if you are using Turbo Tax software, you may try updating the Turbo Tax program to see if you are able to report it.

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February 21, 2021

I have updated the software & continue to get the message:

Form 1099-R coronavirust dist - you can't file just yet due to a recent law passed by congress....

Is turbotax still waiting for an update from the IRS? I installed updates on 2/20/2021.

MaryM428
February 22, 2021

The software has been updated, but your browser is holding old data.  Use Chrome browser, not the app.

Follow these steps to clear the browser data:
 

Use the Chrome browser
Click the three dots in the upper right corner
Select Settings

Privacy and Security

Clear browser data for all time

 

Insert clear browser pic

 

Then sign in to TurboTax on the Chrome browser and review and file your return.