1099-Q for dependents and taxable amount?
1) Do we report 1099-Q for dependent on parent's return?
2) Form only has amounts for Gross Distribution, how do I know if/how much is taxable?
Thanks
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aYy3S7scCqllvkab8P4pmk
02/09/09 10:27am PST
Viewed by asker 03/18/09 4:09pm PDT
Viewed by asker 03/18/09 4:09pm PDT
4 Replies
03/09/09 8:06am PDT
You question has not been answered in this forum. Have you tried looking on the IRS or TaxAlmanc websites to find your answer? The TaxAlmanac is a free online tax research resource and community for tax professionals.
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Claudia
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03/26/11 4:05pm PDT
If the 1099-Q is issued to the dependent's name & ssn, any taxable earnings would be reported on the dependent's return. However, if there is no amount in box 2 (earnings), there cannot be any taxable income from the distribution, because it includes no earnings.
05/18/11 6:44am PDT
So there is no way to get the tax benefit even if there were qualifying expenses in excess of distribution? The way I read it the parents' can't claim the exemption in order for the dependent to claim qualifying expenses?
05/18/11 7:49am PDT
Latest post
The 1099-Q reports the amount of the distribution from the plan. It does not report the qualified expenses. The educational institution issues a 1098-T for the amount of the tuition and related qualified expenses. There are 2 separate issues here: 1. Calculating any taxable earnings included in the 1099-Q distribution and reporting the taxable amount on the return of the person to whom the 1099-Q was issued. 2. Reporting the qualfied expenses on the return of the parent/parents who claim or can claim the student as a dependent, in order to benefit from either an education credit or a tuition deduction.
