QTP and Coverdell ESAs

[cientax]

I have never dealt with this issue and need help please. I have a new client filed MFJ and claimed no dependents and neither H/W attended college. They have a son, age about 20 attended college and filed his own tax return since he had a job. Don't know yet how much he earned. H/W received a 1099Q which shows the son's name as the Recipient of the distribution. Should this distribution be reported on the parents tax return or should the son show it on his tax return? The 1099Q that I am looking at is what was filled out on turbotax program and not a copy of the original form. I have requested a copy of the original 1099Q from client.

On this copy (not original form) question A: Who was the designated beneficiary of the distibution, taxpayer checked Not Applicable.

Question B: Who was the recipient of the distribution reported on this form? Taxpayer checked the box Taxpayer. But the son is named on the 1099 and not the taxpayer.

Question 6: Check if the recipient is not the designated beneficiary .......this box is checked by the client.

I'm confused. Please help. Thanks again.

[Elrod]

cientax,

Look at this........PDF.....

http://www.irs.gov/pub/irs-pdf/i1099q.pdf

I find that preparation instructions for 1099's help with a lot of questions.

Also you are wise in requesting the original 1099.

[kcjenkins]

And do not forget that you should charge EXTRA whenever you are clearing up a problem the client created for himself. I call it the "TurboTax surcharge".