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What is Form 1099-Q?

IRS Link to Form — Found Here

Distributions from qualified educational accounts such as 529s will be reported on a 1099-Q.

This will be submitted by the institution serving as the custodian of the account. Qualified tuition programs (QTPs) might include Coverdell Educational Savings Accounts (ESAs) or 529 plans, and distributions from these plans are not taxable when used for qualified educational expenses, such as college tuition.

The distributions from these plans are reported by the custodian institutions from where the account is held and distributions are made. The parent or student receiving the distributions will then need to report it on their 1040, and if it is offset by amounts equal to or greater than it which were spent on qualifying educational expenses, the distribution will not be taxable.

Each state has their own 529 plan, but investors from any state can generally use the plan, even if that means passing up a small state tax deduction for the contributions.

Keywords: Coverdell ESA, 529 Plan, qualified educational expenses,