Form 1099 q-2025

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The recipient listed on Form 1099-Q Payments From Qualified Education Programs (Under Sections 529 and 530) should report the distribution on his or her tax return. If the recipient is a family member, the distribution has to be reported on that persons tax return, not your return.
If the parent is claiming the student as a dependent, it may be used on the parents tax return. If the student is filing independently, it may be used on their return. Its important to review the requirements to decide whos eligible to claim the education credits before filing your return.
Amounts on Form 1099-Q only need to be reported if the distributions were non-qualified, which means they were spent on something other than tuition, fees, room and board and required expenses. That means that most people do not need to report their 529 distributions on their tax return.
Whoever the 1099-Q is issued to must report that 1099-Q on their tax return. In other words, the person whose SSN is on the 1099-Q should report the form it could be the beneficiary student or the account owner, who may be a parent or other relative.
The result must be reported as income on the beneficiarys or the account owners federal income tax return, Schedule 1 Form 1040, line 8, or Form 1040NR, line 21. If the distribution is subject to the 10% penalty tax, the additional tax must be reported on Schedule 2 (Form 1040), line 6, or Form 1040NR, line 57.
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If your earnings are taxable, you must report the taxable earnings (box 2 on the 1099-Q form) on line 21 of IRS form 1040. If additional penalties apply, you also may need to complete IRS form 5329. Consult a tax professional for more information.
The 1099-Q gets reported on the recipients return. ** The recipients name SS# will be on the 1099-Q. Even though the 1099-Q is going on the students return, the 1098-T should go on the parents return, so you can claim the education credit.
Q-Qualified distribution from a Roth IRA. Use code Q for a distribution from a Roth IRA if you know that the participant meets the 5-year holding period and: The participant has docHubed age 59 1/2, The participant died, or. The participant is disabled.

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