Question

1099Q

Forum|Forum|4 years ago
February 19, 2022
2 replies
0 views

We received a 1099Q for a qualified distribution for our grandson who is not a dependent. Nowhere in my return was I asked if I received this form. I even tried entering it manually and it just messed things up. I finally just filed without it. It's wasn't a large amount - like just over $1,000. Did I screw up?

TurboTax Business Windows

F

FangxiaL

It depends.

If you received Form 1099-Q you should have included it on your tax return. It doesn't mean you are going to pay more taxes. If you don't report it on your return, IRS might treat it (the earnings portion) as unreported income.

If you withdrew from the College Savings account as the recipient and then used the money to pay for your grandson's qualified educational expenses, you are considered as the recipient of the 1099-Q form.

If you entered the 1099-Q form and answer the questions correctly, you can avoid the income tax and penalty on the earnings as long as the funds were used to pay for your grandson's qualified education expenses, even if he is not a dependent.

For future reference or if you'd like to consider amending your refund, follow these steps to enter Form 1099-Q:

Open or continue your return
Select Federal and then Deductions & Credits
Scroll down to the Education section under All tax breaks
Select Show more and then select Start or Revisit next to ESA and 529 qualified tuition programs (Form 1099-Q)
Follow the screens to enter your info.

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D

draclvrAuthor

Thank you! Exactly what I needed.

D

dragmot4096

Where do I enter the information on the 1099Q into my Turbo Tax Premier program?

M

mglauner

Here's the steps to Enter a 1099-Q in TurboTax.

For most qualified education program beneficiaries, the amounts reported on the 1099-Q aren’t reported on a tax return. Just keep it for your records.

Here's more detailed info on Form 1099-Q to help you.

@dragmot4096