1099-Q Distribution - Parents vs Child

[MAJ]

1099-Q is in childs name as are the 1098-T.
Does the 1099-Q have to report on the child's return (room board, etc) and the tuition on the parents?
Or should the 1099-Q be tied to the parents as well?

Thanks

[JON]

If dependent on parents' return it goes on the parents' return.

[rbynaker]

See TTB (2019) 12-6, bottom of column 2: "Who is taxed?"

It depends on what type of plan and who got the money. From my experience the custodians do a pretty good job of getting the 1099-Q right (unlike issuers of 1098-T forms). YMMV.

Rick

[BP.]

The portion of the distribution that is not spent in a suitable way then becomes taxable income

You probably meant to note taxable income is not actually the unspent portion of the distribution, but just a proration of the earnings part of the distribution.

TTB 12-6 - "If distributions are more than adjusted expenses, a portion of the earnings is taxable."