Fillable Form 1099-Q

What is Form 1099-Q?

Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530) is an Internal Revenue Service (IRS) tax form sent to individuals who receive distributions from a Coverdell education savings account (CESA) or a qualified tuition program (QTP).

Officers or employees in charge of a program established by a state or a qualified educational institution should file for an IRS Form 1099-Q. It can also be filed by anyone who has received a distribution from a 529 plan, most commonly known as the qualified tuition program (QTP).

Coverdell education savings accounts (CESAs) and qualified tuition programs (QTPs) are tax-advantaged investment accounts designed to pay for qualified higher education expenses.

An IRS Form 1099 Q will show the amount of gross distributions made from the account throughout the reporting year. After that, the gross distributions are compared to the educational expenses incurred over the year. The excess of gross distributions above eligible school costs is taxable and must be disclosed on the taxpayer’s tax return. If the individual’s expenses exceed his or her distributions, the excess might be applied to an education tax credit.

If a qualified tuition program (QTP) distribution was made to the beneficiary, the school, or a student loan provider, Form 1099 Q will be issued to the beneficiary student. The beneficiary’s income tax return will include any taxable portion of the distribution. Distributions used to pay for nonqualified expenses are subject to income tax and a 10% penalty on the earnings portion of the withdrawal.

Tax Form 1099-Q must include the payer or trustee’s name, address, telephone number, and tax identification number (TIN), along with the recipient’s name, address, account number, and TIN, which for individuals is typically their social security number (SSN).

How to fill out Form 1099-Q?

Filling out the 1099-Q Tax Form is quick and simple. You can download and print a PDF copy of the 1099-Q Form from the Internal Revenue Service (IRS) website that you can manually complete. But for your convenience, you can also fill out the 1099 Q Form electronically on PDFRun. By following the instructions below, you can accomplish the form in minutes.

There are multiple copies of the 1099 Q Tax Form that must be filled out. The instructions below apply to all copies of the form, but each form is sent to different recipients, so it is important to keep in mind which forms you are filling out.

Copy A is to be filed with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and to be submitted to the Internal Revenue Service (IRS) Center.

Mark the appropriate box at the top if Copy A is “Void” or “Corrected”.

Copy B is to be given to the recipient.

Mark the box at the top if Copy B was checked.

Copy C is to be given to the payer or trustee.

Mark the appropriate box at the top if Copy C is “Void” or “Corrected”.

For calendar year

Enter the calendar tax year.

Payer’s/Trustee’s name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

For qualified tuition programs (QTPs), enter the payer’s or trustee’s name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number. For a program established and maintained by a state that uses the employer identification number (EIN) of the state, enter the name of the state on the first name line and the name of the program on the second name line.

For Coverdell education savings accounts (CESAs), enter the payer’s or trustee’s name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number.

Payer’s/Trustee’s TIN

For qualified tuition programs (QTPs), enter the employer identification number (EIN) of the QTP.

For Coverdell education savings accounts (CESAs), enter the employer identification number (EIN) of the payer or trustee.

Recipient’s TIN

For qualified tuition programs (QTPs) and Coverdell education savings accounts (CESAs), enter the tax identification number (TIN) of the designated beneficiary as the recipient.

Recipient’s name

For qualified tuition programs (QTPs), list the designated beneficiary as the recipient only if the distribution is made:

• Directly to the designated beneficiary, or
• To an eligible educational institution for the benefit of the designated beneficiary.

Otherwise, list the account owner as the recipient of the distribution.

For Coverdell education savings accounts (CESAs), enter the name of the designated beneficiary as the recipient.

Street address

For qualified tuition programs (QTPs) and Coverdell education savings accounts (CESAs), enter the street address, including the apartment or suite number, of the recipient.

City or town, state or province, country, and ZIP or foreign postal code

For qualified tuition programs (QTPs) and Coverdell education savings accounts (CESAs), enter the city or town, state or province, country, and ZIP or foreign postal code of the recipient.

Account number

The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1099-Q. The Internal Revenue Service (IRS) encourages you to designate an account number for all Forms 1099-Q that you file.

Box 1

Enter the gross distribution amount from a qualified tuition program (QTP), whether in cash or in-kind, including amounts for tuition credits or certificates, payment vouchers, tuition waivers, or other similar items. Gross distributions also include a refund to the account owner or the designated beneficiary, or to the beneficiary upon death or disability.

Enter the gross distribution amount from a Coverdell education savings account (CESA), including amounts for a refund, a payment upon death or disability, or a withdrawal of excess contributions plus earnings.

Box 2

Enter the amount of earnings. If there is a loss and this is not the final year for distributions from the account or there are no earnings, enter zero. Enter a loss, only if this is the final year for distributions from the account. Earnings are not subject to backup withholding.

If you are reporting a distribution from a Coverdell education savings account (CESA) that includes a returned contribution plus earnings, you should file two Forms 1099-Q, one to report the returned contribution plus earnings, the other to report the distribution of the other part of the account.

If earnings and basis are not reported for Coverdell education savings account (CESA) distributions, leave this box blank. Do not enter zero. Instead, you must report the fair market value (FMV) as of the end of the year in the blank box below boxes 5 and 6. Label the amount “FMV.”

Box 3

For qualified tuition programs (QTPs) and Coverdell education savings accounts (CESAs), if you can determine the basis, enter the basis included in the gross distribution reported in box 1. The amount in box 3 must equal box 1 minus box 2.

If earnings and basis are not reported for Coverdell education savings account (CESA) distributions, leave this box blank. Do not enter zero. Instead, you must report the fair market value (FMV) as of the end of the year in the blank box below boxes 5 and 6. Label the amount “FMV.”

Box 4

Mark the box if the distribution was made directly (trustee-to-trustee transfer) from one qualified tuition program (QTP) to another, or from a QTP to an Achieving a Better Life Experience (ABLE) account, also known as a 529 ABLE or 529A account.

For the Coverdell education savings account (CESA), mark the box if the distribution was made directly to another CESA or to a qualified tuition program (QTP).

In a trustee-to-trustee transfer between qualified education programs, the distributing program must provide you with a statement reporting the earnings portion of the distribution within 30 days of the distribution or by January 10, whichever is earlier. You must properly account for this in figuring the earnings or (loss) reported in box 2 and the basis reported in box 3.

Box 5

Mark the “Private” box if the distribution is from a qualified tuition program (QTP) established by one or more private eligible educational institutions. Mark the “State” box if the distribution is from a QTP established by a state. Otherwise, mark the “Coverdell ESA” box.

Box 6

Mark the box if the recipient is not the designated beneficiary under a qualified tuition program (QTP) or a Coverdell education savings account (CESA) (see section 529(e)(1)).