This is my first incident of having a 1099 Q this year. I have reviewed Publ 920 on Education credits. I have a 1099Q for a full time college student who is a dependent on his parent's return. Box 1 shows 4445. Box 2 Earnings 990. and box 3 Basis 3455. The 1099Q was issued by State of Fl, Prepaid College Plan. I take it that none of this money is reported as income and thus doesnot need to be included on his return. Does the 1099Q need to be indicated as Gross Income but Nontaxable income?
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Last edited by Chief; 03-09-2006, 01:37 PM. -
no 1099Q in my program
Since there isn't a 1099Q programmed in the Taxwise program, I personally would not include it on the return. I read the pub 970 and it does not say that it must be reported as non-taxable income.
For those 2 reasons, I would say no.
Anybody else? Chime on in...
~possi"I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey -
The only software where I have seen the 1099Q is HRB. Box 1 is the amt of tuiton paid to the college. Box 3 is the basis for that particular year and box 2 is the earnings based on box 3.Originally posted by Chief
You do not have to report the 1099Q however you can claim the education credits based on your contribution to the plan. That would be box 3Everybody should pay his income tax with a smile. I tried it, but they wanted cashComment
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Somewhat disagree with two previous replies. Check out Pub 970, chapter 8, the section discussing coordination with Hope & LL credits. If taking one of the credits based on distribution (not basis) some of the earnings may taxable. The example in the pub is very easy to use. You'll need to know the education expenses paid by the taxpayer. Then just plug in your specific numbers into the equation in the pub. Hope this helps!Comment
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