Form 1099Q

[Unregistered]

Client received a 1099Q. Box 6 is marked "the receipient is not the designated beneficiary."
Box 1 equals the Earnings in box 2 plus the basis in box 3.

I have read The Tax Book and the IRS literature. I cannot find this addressed anywhere. Is it significant? Any way to tell if any of this distribution is taxable?

Any help appreciated.

[Chief]

1099q

is for prepaid education programs. Not significant and not reportable.

[LCP]

is for prepaid education programs. Not significant and not reportable.

It appears to me that they could apply to both types of 529 plans..... prepaid tuition and the savings type.

Also, the qualifying tuition does need to be reduced by the distributions, I believe. I saw a 1098-T yesterday that had it included in the Scholarships/Grants box however every college seems to handle the reporting differently.