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Box 3. Basis. For QTPs and Coverdell ESAs, if you can determine basis, enter in box 3 the basis included in the gross distribution reported in box 1. The amount in box 3 must equal box 1 minus box 2.
File Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530), if you (a) are an officer or an employee, or the designee of an officer or
16 paź 2024 · Form 1099-Q is received by someone who has taken money out of a 529 plan or a Coverdell ESA and designates someone as the beneficiary. Qualified education programs include 529 plans and Coverdell ESAs, which allow tax-free growth if the money is used for qualified education expenses.
Objectives. Recognize qualified higher educational expenses for §529 plans. Properly calculate the tax-free and taxable portions of distributions from a §529 plan. Properly report the distributions from a §529 plan. Identify ways for a client to utilize §529 funds.
18 gru 2023 · Typically, Box 1 of Form 1099-Q lists the total distribution, Box 2 includes the earnings portion of the distribution, and Box 3 includes the basis, which is the contribution portion of the distribution. The earnings portion of a non-qualified withdrawal is subject to income tax and a 10% penalty.
23 paź 2024 · Did you receive Form 1099-Q this tax year? The Internal Revenue Service (IRS) requires payers to send you this tax form if you took distributions from a tax-advantaged education investment account such as a 529 plan or Coverdell education savings account (ESA).
You will receive a Form 1099-Q Payments From Qualified Education Programs (Under Sections 529 and 530) from each of the state programs from which you received a Qualified Tuition Program (QTP) distribution in the tax year.
