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March 24, 2021
Question

How do I enter 11 line entries from my 1099Q. I have 11 line entries on my 1099-Q but Turbo Tax only lets me add in 10 lines.

  • March 24, 2021
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1 reply

KrisD15
March 25, 2021

What is box 11 on your 1099-Q? There is no box 11 on the form, did they report the Fair Market Value instead (under Box 5&6)? If so, there is a calculation for that but TurboTax does not support it. 

 

First question is this- did you use the distribution for education expenses? If yes, just skip entering the 1099-Q. keep a copy with your tax file. If you paid tuition with this distribution, subtract that amount from Box 1 of the 1098-T when you enter the 1098-T. If you paid room and board with this distribution, simply report that much less of room and board (if you are prompted to enter room and board) however room and board expense made be irrelevant. 

 

 

If you do need to figure the taxable portion, use IRS Pub 970 or ask the financial institution for the numbers for Box 1,2 and 3 

If you have amounts for boxes 1,2 and 3, leave the fair market value (what you call box 11) off.  

IRS Pub 970

“Earnings and basis. You will receive a Form 1099-Q for each of the Coverdell ESAs from which money was distributed in 2020. The amount of your gross distribution will be shown in box 1. For 2020, instead of dividing the gross distribution between your earnings (box 2) and your basis (amount already taxed) (box 3), the payer or trustee may report the fair market value (account balance) of the Coverdell ESA as of December 31, 2020. This will be shown in the blank box below boxes 5 and 6.”

“Figuring the Taxable Portion of a Distribution The taxable portion is the amount of the excess distribution that represents earnings that have accumulated tax free in the account. Figure the taxable portion for 2020 as shown in the following steps. 1. Multiply the total amount distributed by a fraction. The numerator (top part) is the basis (contributions not previously distributed) at the end of 2019, plus total contributions for 2020, and the denominator (bottom part) is the value (balance) of the account at the end of 2020 plus the amount distributed during 2020. 2. Subtract the amount figured in (1) from the total amount distributed during 2020. The result is the amount of earnings included in the distribution(s). 3. Multiply the amount of earnings figured in (2) by a fraction. The numerator (top part) is the adjusted qualified education expenses paid during 2020, and the denominator (bottom part) is the total amount distributed during 2020. 4. Subtract the amount figured in (3) from the amount figured in (2). The result is the amount the beneficiary must include in income. The taxable amount must be reported on Schedule 1 (Form 1040), line 8.”

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