I have a question regarding 1099-Q reporting. My son received a Form 1099-Q. Does he have to report his earnings from this plan, or can he claim some deductions for education expenses?
Regarding 1099-Q reporting, most payments from qualified education program beneficiaries aren’t taxable. So, don’t report these on a return. However, annual distributions might be more than your son’s qualified education expenses. If so, he should report some of the earnings on Form 1099-Q, Box 2 as income on his return. If the earnings are more than his qualified educational expenses, he must report that amount without any further deduction. His qualified expenses will reduce the taxable amount. Qualified expenses include:
To learn more about reporting earnings and Form 1099-Q, see Publication 970 at www.irs.gov.
As an estate executor, it's important to know which tax form you'll need for an open estate. Learn more from the tax experts at H&R Block.
Learn about IRS Notice CP298 and how to address an IRS bill for unpaid taxes. Get help from the tax experts at H&R Block.
Read the IRS definition of an installment agreement for businesses and get more insight from the tax experts at H&R Block.
Learn more about notice CP161 and how to handle an IRS bill for unpaid taxes with help from the tax experts at H&R Block.