where do i report 1099Q earnings

Forum|Forum|1 year ago
February 21, 2025
2 replies
0 views

we did not use all of my daughter's college prepay acct and got a refund that shows earnings of 8608. where do i report this from the 1099Q

AmyC

Employee

Go to federal deductions and credits. Scroll down to Education section. If you have money left, you will need to enter the 1099-Q and then subtract out the nontaxable portion when you enter the 1098-T.

College prepay account - I am going to assume you mean either a Coverdell or 529 savings program. These prepaid accounts allow you to withdraw expenses to cover room and board, tuition, and other required expenses. If all of the money was used on eligible expenses, it is not taxed and the form is not entered.

Reference: Tax benefits for education: Information center

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

Hal_Al

Employee

IRS Publication 970 says "State prepaid education accounts" are treated the same as Qualified Tuition Programs (QTP), for tax purposes. This means if you had no qualified educational expenses, for 2024, the $8608 earnings will be taxable income and subject to the additional 10% ($861) non qualified distribution penalty.

In the 1099-Q interview follow the instructions for a QTP also known as a 529 plan.

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

--ESA and 529 Qualified Tuition Programs (1099-Q)