Distribution from Qualified Education Program

[Kathy]

Taxpayer received a 1099 Q, in her child's name & SSN (high school junior) that is claimed as a dependent on her return.

Box 1 $504.03
Box 2 & 3 blank
Box 4 No
Box 5 Yes
Box 6 Beneficiary

I'm reporting it on Line 21as income on parent return.

Appreciate any comments....

[Bees Knees]

Why would you report anything as taxable if box 2 earnings are zero? The contributions were not deductible, so if the withdrawals do not exceed contributions, none of it should be taxable.

And even if they were taxable, why would you report it on the parent's return? It is in the child's name and SSN. The child's standard deduction would completely wipe out any tax, even if all of the amount in box 1 were taxable.