1099-Q

[Jan S]

I have a 1099-Q with the following info:

Box 1 - Gross Dist. $1,800

Box 2 - Earnings $178

Box 3 - Basis $1,622

Box 4 - $0

Box 6 - X (the recipient is not the designated beneficiary)

There were no education expenses.

Do I include $178 or $1800 in income? I know there is a 10% penalty also. The TaxBook implies that only the earnings are taxable.

[joanmcq]

$178. and a penalty