1099Q

Forum|Forum|1 year ago
March 5, 2025
2 replies
0 views

How can I split up Qualified vs non qualified distributions from 1099Q ? Do I have report a 1099Q on tax return if have qualified expenses to cover ?

KrisD15

No, if the distribution was used for education expenses, such as Tuition, Fees, Books and Supplies, AS WELL AS ROOM AND BOARD, the 1099-Q needn't be entered, however those SAME expenses cannot be used towards an education credit.

If the distribution was used for Room and Board, and room and board was as much or more than the distribution, they would cancel each other out and the 1099-Q (as well as the room and board) would not be entered at all.

You also have the option of moving numbers around (within reason) to get a credit.

IRS Pub 970 explains more

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

pschack26Author

Thank you for response

To be specific, My child has a 1099q with Gross Dist of $23k - $20k was used for qualified expenses. $3k was used for unqualified expenses and the earnings on the $3k was $2k. When I try to put the $23k in turbo tax I get a much higher tax as he should only pay tax on the $2k of earnings. Can I just report the $3k distribution ? There does not seem to be a way to divide the 1099q .

Thank you

Bsch4477

Employee

If all distributions were used for qualified education expenses you don’t have to report that form.