Question

Coverdale ESA distribution

Forum|Forum|2 years ago
January 23, 2024
1 reply
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Hi,

I took a distribution to pay for my freshman's college expenses from a coverdale. On the tax form it lists my daughter TIN instead of mine even though my name is primary and its FBO her. When I entered it in turbo tax it disappeared in totals since she was the recipient and not me. Does that mean I have to list this form and amount on her taxes?

TurboTax Premier Online

M

MayaD

Yes. Form 1099-Q reports distributions and benefits from Coverdell education savings accounts and 529 plans. It's reported on the tax return of the person whose Social Security number is on the form.

Where do I enter a 1099-Q?

The distributions are tax-free to the extent the amount of the distributions doesn't exceed the beneficiary's qualified education expenses. If a distribution exceeds the beneficiary's qualified education expenses, a portion of the earnings is taxable to the beneficiary.

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