Another first for me, the 1099-Q

[Margaret CPA in OH]

Recently I had my first 1099-LTC, now I have a 1099-Q. Where do I put the numbers?

[redux]

Recently I had my first 1099-LTC, now I have a 1099-Q. Where do I put the numbers?

Try

Proposed Treasury Regulations

Prop. Regs. Sec. 1.529-4. Time, form, and manner of reporting distributions from QSTPs and backup withholding.

EDIT:

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

[Maura]

form 5329

[elfling]

If you jump from 1040, line 21, 1099Q is on the other income list.

[Margaret CPA in OH]

Thanks so much to all of you. The related problem isn't clear. Mom withdrew money for son who turned 24 in 2007 so is no longer a dependent and daughter who in taking classes from some internet school. Mom is upset, to say the least, that she cannot take son as dependent and that daughter's schooling doesn't qualify for education deduction/credits.

There were distributions all in her name. I am certain that the money went for tuition, etc. If it went for the son who is not dependent for 2007, does it matter that the 1099-Q is in her name, not the designated beneficiary? If it went for daughter's expense, I think that means it wasn't for qualified expenses so all the earnings would be taxable to the mom, right?

I will look for those Prop. regs. I had already tried to find info on the form but only got the form and instructions on preparing it, not how to report. Thanks again!

[JRS]

I found this on the actual 1099Q on the IRS website. Not in the instructions for the 1099QIt maybe it will help. It did not copy correctly so, hopefully the link will work.

http://www.irs.gov/pub/irs-pdf/f1099q_07.pdf

Instructions for Recipient

Box 1. Shows the gross distribution (including in-kind distributions) paid to you this year from a qualified tuition program (section 529) or a Coverdell ESA (section 530). This amount is the total of the amounts shown in box 2 and box 3. See Pub. 970 for more information.

Box 2. Shows the earnings part of the gross distribution shown in box 1. Generally, amounts distributed are included in income unless they are used to pay for qualified education expenses, transferred between trustees, or rolled over to another qualified education program within 60 days. Report amounts included in income on the “Other income” line of

Form 1040.

Box 4. This box is checked if you transferred the amount in box 1 from one education program to another education program in a trustee-to-trustee transfer. However, this box may not be checked if the transfer was made from a A (Form 1040), Itemized Deductions.

[Margaret CPA in OH]

Thanks, JRS. I always go to IRS and search pubs, forms and instructions before asking questions. I have read the information you kindly provided but still don't know the answer to my question.

It turns out, the daughter's online school does, in fact, have campuses and the online courses are optional so she's good. And we can substantiate that her qualified expenses exceed the amount of earnings shown on the 1099Q. The remaining issue is that the 1099Q is in the mother's name and the box is checked that she is not the beneficiary. So I decided to input on line 21 (thanks to elfling for the "hop to" for input) then back it out as spent on qualifying expenses, see Form 8863. I just don't think mom should be taxed on the earnings when the money was properly spent. I did advise to have further withdrawals in daughter's name.

And it turns out the son is out of luck as he doesn't qualify as a dependent and has to file for himself. His income is too low to have any benefit from education expenses.

Thanks again to all!