If you received a distribution from a Coverdell Education Savings Account (ESA) or a Qualified Tuition Program (QTP)—such as a 529 plan—you should receive Form 1099-Q.
What to Know:
- Form 1099-Q reports the total amount distributed, including rollovers.
- Distributions may be partially or fully taxable, depending on how the funds were used.
- Qualified expenses (e.g., tuition, fees, books, supplies) are not taxable.
- Non-qualified expenses (e.g., room, board, travel) may result in taxable income.
⚠️ Important:
To determine if any portion of the distribution is taxable, enter the information from Form 1099-Q into the program. The system will guide you through the necessary calculations.
How to Enter in the Program
To report your 1099-Q:
- Go to the Federal section.
- Select Income, then choose “Select My Forms.”
- Less Common Income
- Choose “Qualified Education Program Distributions (Form 1099-Q)”.
Use the program’s guidance tools to ensure accurate reporting and avoid unnecessary tax liability.