Rev. November 2019
These instructions explain how to complete and file Form 1099-Q, which reports distributions from qualified education programs, including Coverdell Education Savings Accounts (ESAs) and Qualified Tuition Programs (QTPs). The form is used by payers or trustees to report gross distributions, earnings, basis, and other relevant information to the IRS and recipients.
Qualified education program providers, such as educational institutions and state agencies, are required to file Form 1099-Q for each recipient of a distribution from their qualified tuition program or Coverdell Education Savings Account during the calendar year.
Form 1099-Q, also known as the 'Qualified Tuition Program (QTP) Distributions' form, is used to report distributions from a qualified tuition program or Coverdell Education Savings Account to recipients and the Internal Revenue Service (IRS).
Form 1099-Q has distribution codes that indicate the type of distribution made. These include distribution code 1, which is used for distributions made to a recipient and any direct payments to a qualified educational facility; distribution code 2, which is used for excess contributions plus earnings taxable in the current year; distribution code 3, which is used for excess contributions plus earnings taxable in the prior year; distribution code 4, which is used for disability distributions made after the recipient was disabled; and distribution code 5, which is used for prohibited transactions.
A Trustee-to-trustee transfer is a distribution of funds from one Qualified Tuition Program (QTP) to another QTP. This type of transfer does not result in taxable income and is allowed by the IRS under certain circumstances.
To establish a Qualified Tuition Program (QTP), an eligible educational institution must meet certain requirements set by the IRS. These include being a public or private college, university, vocational school, or other postsecondary educational institution that is eligible to participate in a student aid program under Title IV of the Higher Education Act of 1965. Additionally, the QTP must have a written agreement with the institution and be designated as a QTP on the institution's website.
A Coverdell Education Savings Account (Coverdell ESA) is a type of Qualified Tuition Program that allows individuals to make tax-free withdrawals or distributions from their accounts in certain circumstances. The distribution must be made for qualified education expenses, such as tuition, fees, room, and board.
A Qualified Tuition Program (QTP) is a program established and maintained by an eligible educational institution that allows individuals to make tax-free withdrawals or distributions from their accounts in certain circumstances. The distribution must be made for qualified education expenses, such as tuition, fees, room, and board.
Form 1099-Q requires the following information: recipient's name and taxpayer identification number (TIN), QTP or Coverdell ESA account number, gross distribution amount, earnings or losses, basis (if determinable), distribution codes, trustee-to-trustee transfer flag, private/state/Coverdell ESAs checkbox, and designated beneficiary checkbox.
To establish a Coverdell Education Savings Account (Coverdell ESA), an eligible educational institution must meet certain requirements set by the IRS. These include being a public or private college, university, vocational school, or other postsecondary educational institution that is eligible to participate in a student aid program under Title IV of the Higher Education Act of 1965. Additionally, the Coverdell ESA must have a written agreement with the institution and be designated as a Coverdell ESA on the institution's website.
Form 1099-Q is one of Tax forms that are documents used to report information related to taxes to the relevant tax authority. There are various types of tax forms, including federal, state, and local tax forms, which can vary depending on the taxpayer's circumstances and location.
The easiest way to fill Form 1099-Q online
Delete filling session
Delete editing session
