Form 1099Q

[JG EA]

I have this form for a student (now married and filing jointy) the have a substitute form (Vanguard). They have Boxes 1,2,3 covered in two lines with a description of the fund that the Coverdell ESA distributed, but the $ amounts are under box 1. There are no numbers in box 2.

Should I assume it is zero in Box 2 the earnings box?

Do I need to show Box 1 on the return if box 2 is indeed empty?

[Koss]

Coverdell Distribution

Is there an entry for Box 3?

Is there an entry for the FMV as of 12/31/11, that is not associated with a box number?

Did the taxpayer have any qualifying education expenses?

BMK

[RitaB]

You might

You might have the client call Vanguard and ask if there are earnings. Sounds like the form is not the best.

But, if there are earnings, and no qualified education expenses, the earnings go on line 21 of Form 1040, and that's all you report.

[JG EA]

Thanks.

Rita: That makes sense to call Vanguard and ask.

Probably the questions I should have asked the board are:

1. Is it possible to have distributions and the earnings be the same number ? I wouldn't think that is possible. so from that I conclude there are no earnings?
2. Could the basis just be the same as the distributions or could they have left it off of the box 3?

I will call them with these questions.


Koss: There is no entry in box 3 - but the words go across to box 3 and and money amounts are under the words - that is why I'm confused.

There is a zero under the FMV box.

Yes, the taxpayer has education expenses, but I am waiting for their information to see how much and grants, etc.

[RitaB]

I'm with you

Thanks.

Rita: That makes sense to call Vanguard and ask.

Probably the questions I should have asked the board are:

1. Is it possible to have distributions and the earnings be the same number ? I wouldn't think that is possible. so from that I conclude there are no earnings?
2. Could the basis just be the same as the distributions or could they have left it off of the box 3?

I will call them with these questions.

Yeah, I am thinking they may have really botched that form.

[Koss]

Form 1099-Q

JG--

Take a look at the instructions for Form 1099-Q, on page 4 of the IRS PDF:

http://www.irs.gov/pub/irs-pdf/f1099q_11.pdf

The institution is not required to provide numbers in boxes 2 and 3. You may have to use a worksheet in Pub. 970 to determine the taxable amount of the distribution.

BMK

[RitaB]

Right you are

The institution is not required to provide numbers in boxes 2 and 3. You may have to use a worksheet in Pub. 970 to determine the taxable amount of the distribution.BMK

Hmm, who knew? Not me, obviously.

I am thinking this form is as useful as our friend, Form 1098-T.

Good job, Koss.

[FEDUKE404]

Separated at birth

Hmm, who knew? Not me, obviously.

I am thinking this form is as useful as our friend, Form 1098-T.

Good job, Koss.

EXCELLENT comment re Form 1098-T. (How relevant to anything is billed expenses?!?)

As for the 1099Q, the information on the form is frequently only that which is required. The poor tax pro has to break out a crystal ball for further guidance.

FE

[RitaB]

Good thing

EXCELLENT comment re Form 1098-T. (How relevant to anything is billed expenses?!?)

As for the 1099Q, the information on the form is frequently only that which is required. The poor tax pro has to break out a crystal ball for further guidance.

FE

Good thing we are rockin that crystal ball around here.

Boom.