1099-Q

Mskuang202

I received a 1099-Q from Charles Schwab on an education IRA to pay for my son who is the beneficiary on the account.

The Box 1 show the Gross Distribution of $10237 and the Box 2 & 3 has no values.

When I enter the 1099-Q on Turbot Tax it asks me the box 2& 3, How can I solve these issues?

Or should I report tax at all?

JanaA

Hello Mskuang202!
Information from a 1099-Q form is not always reported on your return.

You don't need to enter and report your Form 1099-Q if:

• You rolled over your 529 education plan from one account to another or
• You used all of your distribution for education expenses and no one is claiming an education credit based on the expenses paid for using your 529 program distribution.

You do need to enter and report your Form 1099-Q if:

• You didn't use your entire distribution for education expenses or
• You or someone you know is claiming an education credit based on the same expenses paid for with your 529 program distribution.

Based on this information, if you determine that you do need to report this you can do so in our software by selecting the Income tab and then Tuition Program Distributions (Form 1099-Q) from the drop-down menu. Here the software will guide you through entering the information from your 1099-Q form.

This option includes entering the information from both boxes 2 and 3. 

Additionally, as this form is for FreeTaxUSA users, we cannot provide information regarding other platforms. If you need assistance you will need to contact the other platform directly.