Instructions for IRS Form 1099-Q "Payments From Qualified Education Programs"

This document contains official instructions for IRS Form 1099-Q, Payments From Qualified Education Programs - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 1099-Q is available for download through this link.

Instruction Details:

  • This 2-page document is available for download in PDF;
  • Not applicable for the current tax year. Choose a more recent version to file this year's taxes;
  • Complete, printable, and free.

Download your copy of the instructions by clicking the link below or browse hundreds of other forms in our library of IRS-released tax documents.

ADVERTISEMENT
ADVERTISEMENT

Download Instructions for IRS Form 1099-Q "Payments From Qualified Education Programs"

Download PDF

Fill PDF online

Rate (4.6 / 5) 41 votes
2019
Department of the Treasury
Internal Revenue Service
Instructions for
Form 1099-Q
Payments From Qualified Education Programs (Under Sections 529 and 530)
Section references are to the Internal Revenue Code unless
beneficiary is a member of the former beneficiary's family.
otherwise noted.
For a Coverdell ESA, the new beneficiary must be a member
of the designated beneficiary's family and be under age 30
Future Developments
(except beneficiaries with special needs).
For the latest information about developments related to
Family members of the designated beneficiary include the
Form 1099-Q and its instructions, such as legislation enacted
beneficiary's spouse. Also included are the beneficiary's
after they were published, go to IRS.gov/Form1099Q.
children, stepchildren, foster children, and their descendants;
siblings and their children; parents, their siblings, and
What’s New
ancestors; stepparents; in-laws; the spouse of any of the
foregoing; and any first cousin of the designated beneficiary.
Trustee-to-trustee transfers. Taxpayers may now roll over
limited funds from a QTP to an ABLE account within 60 days
Statements to Recipients
of the distribution. Report these in box 4, using distribution
If you are required to file Form 1099-Q, you also must furnish
code 1.
a statement to the recipient. Furnish a copy of Form 1099-Q
Reminders
or an acceptable substitute statement to each recipient. See
part M in the 2019 General Instructions for Certain
In addition to these specific instructions, you should also use
Information Returns.
the 2019
General Instructions for Certain Information
Returns. Those general instructions include information
Truncating recipient’s TIN on payee statements.
about the following topics.
Pursuant to Regulations section 301.6109-4, all filers of this
Who must file.
form may truncate a recipient’s TIN (social security number
When and where to file.
(SSN), individual taxpayer identification number (ITIN),
Electronic reporting.
adoption taxpayer identification number (ATIN), or employer
Corrected and void returns.
identification number (EIN)) on payee statements. Truncation
Statements to recipients.
is not allowed on any documents the filer files with the IRS. A
Taxpayer identification numbers (TINs).
payer’s/trustee's TIN may not be truncated on any form. See
Backup withholding.
part J in the 2019 General Instructions for Certain Information
Penalties.
Returns.
Other general topics.
Payer's Name and TIN
You can get the general instructions from
General
Instructions for Certain Information Returns
at
IRS.gov/
QTP. For the payer's/trustee's name and TIN, enter the
1099GeneralInstructions, or go to IRS.gov/Form1099Q.
name and EIN of the QTP. For a program established and
maintained by a state that uses the EIN of the state, enter the
Online fillable form. Due to the very low volume of paper
name of the state on the first name line and the name of the
Forms 1099-Q received and processed by the IRS each
program on the second name line.
year, this form has been converted to an online fillable
format. You may fill out the form, found online at
IRS.gov/
Coverdell ESA. Enter the name and EIN of the trustee.
Form1099Q, and send Copy B to the recipient. For filing with
Recipient's Name and TIN
the IRS, follow your usual procedures for filing electronically if
you are filing 250 or more forms. If, due to a low volume of
QTP. List the designated beneficiary as the recipient only if
recipients, you are filing the form(s) on paper, you can send
the distribution is made (a) directly to the designated
in the black-and-white Copy(ies) A with a Form 1096 you
beneficiary, or (b) to an eligible educational institution for the
also printed from the IRS website.
benefit of the designated beneficiary. Otherwise, list the
account owner as the recipient of the distribution. Enter the
Specific Instructions
TIN for the applicable recipient.
File Form 1099-Q, Payments From Qualified Education
Coverdell ESA. Enter the name and TIN of the designated
Programs (Under Sections 529 and 530), if you (a) are an
beneficiary as the recipient.
officer or an employee, or the designee of an officer or
employee, having control of a program established by a state
Account Number
or eligible educational institution; and (b) made a distribution
The account number is required if you have multiple
from a qualified tuition program (QTP). A trustee of a
accounts for a recipient for whom you are filing more than
Coverdell education savings account (ESA) must file Form
one Form 1099-Q. Additionally, the IRS encourages you to
1099-Q to report distributions made from Coverdell ESAs.
designate an account number for all Forms 1099-Q that you
Do not file Form 1099-Q for a change in the name of the
file. See part L in the 2019 General Instructions for Certain
designated beneficiary on a QTP account if the new
Information Returns.
Nov 05, 2018
Cat. No. 32260M
2019
Department of the Treasury
Internal Revenue Service
Instructions for
Form 1099-Q
Payments From Qualified Education Programs (Under Sections 529 and 530)
Section references are to the Internal Revenue Code unless
beneficiary is a member of the former beneficiary's family.
otherwise noted.
For a Coverdell ESA, the new beneficiary must be a member
of the designated beneficiary's family and be under age 30
Future Developments
(except beneficiaries with special needs).
For the latest information about developments related to
Family members of the designated beneficiary include the
Form 1099-Q and its instructions, such as legislation enacted
beneficiary's spouse. Also included are the beneficiary's
after they were published, go to IRS.gov/Form1099Q.
children, stepchildren, foster children, and their descendants;
siblings and their children; parents, their siblings, and
What’s New
ancestors; stepparents; in-laws; the spouse of any of the
foregoing; and any first cousin of the designated beneficiary.
Trustee-to-trustee transfers. Taxpayers may now roll over
limited funds from a QTP to an ABLE account within 60 days
Statements to Recipients
of the distribution. Report these in box 4, using distribution
If you are required to file Form 1099-Q, you also must furnish
code 1.
a statement to the recipient. Furnish a copy of Form 1099-Q
Reminders
or an acceptable substitute statement to each recipient. See
part M in the 2019 General Instructions for Certain
In addition to these specific instructions, you should also use
Information Returns.
the 2019
General Instructions for Certain Information
Returns. Those general instructions include information
Truncating recipient’s TIN on payee statements.
about the following topics.
Pursuant to Regulations section 301.6109-4, all filers of this
Who must file.
form may truncate a recipient’s TIN (social security number
When and where to file.
(SSN), individual taxpayer identification number (ITIN),
Electronic reporting.
adoption taxpayer identification number (ATIN), or employer
Corrected and void returns.
identification number (EIN)) on payee statements. Truncation
Statements to recipients.
is not allowed on any documents the filer files with the IRS. A
Taxpayer identification numbers (TINs).
payer’s/trustee's TIN may not be truncated on any form. See
Backup withholding.
part J in the 2019 General Instructions for Certain Information
Penalties.
Returns.
Other general topics.
Payer's Name and TIN
You can get the general instructions from
General
Instructions for Certain Information Returns
at
IRS.gov/
QTP. For the payer's/trustee's name and TIN, enter the
1099GeneralInstructions, or go to IRS.gov/Form1099Q.
name and EIN of the QTP. For a program established and
maintained by a state that uses the EIN of the state, enter the
Online fillable form. Due to the very low volume of paper
name of the state on the first name line and the name of the
Forms 1099-Q received and processed by the IRS each
program on the second name line.
year, this form has been converted to an online fillable
format. You may fill out the form, found online at
IRS.gov/
Coverdell ESA. Enter the name and EIN of the trustee.
Form1099Q, and send Copy B to the recipient. For filing with
Recipient's Name and TIN
the IRS, follow your usual procedures for filing electronically if
you are filing 250 or more forms. If, due to a low volume of
QTP. List the designated beneficiary as the recipient only if
recipients, you are filing the form(s) on paper, you can send
the distribution is made (a) directly to the designated
in the black-and-white Copy(ies) A with a Form 1096 you
beneficiary, or (b) to an eligible educational institution for the
also printed from the IRS website.
benefit of the designated beneficiary. Otherwise, list the
account owner as the recipient of the distribution. Enter the
Specific Instructions
TIN for the applicable recipient.
File Form 1099-Q, Payments From Qualified Education
Coverdell ESA. Enter the name and TIN of the designated
Programs (Under Sections 529 and 530), if you (a) are an
beneficiary as the recipient.
officer or an employee, or the designee of an officer or
employee, having control of a program established by a state
Account Number
or eligible educational institution; and (b) made a distribution
The account number is required if you have multiple
from a qualified tuition program (QTP). A trustee of a
accounts for a recipient for whom you are filing more than
Coverdell education savings account (ESA) must file Form
one Form 1099-Q. Additionally, the IRS encourages you to
1099-Q to report distributions made from Coverdell ESAs.
designate an account number for all Forms 1099-Q that you
Do not file Form 1099-Q for a change in the name of the
file. See part L in the 2019 General Instructions for Certain
designated beneficiary on a QTP account if the new
Information Returns.
Nov 05, 2018
Cat. No. 32260M
Box 1. Gross Distribution
Box 4. Trustee-to-Trustee Transfer Checkbox
Gross distributions from a QTP, whether in cash or in-kind,
Check this box if the distribution was made directly
include amounts for tuition credits or certificates, payment
(trustee-to-trustee transfer) from one QTP to another, or from
vouchers, tuition waivers, or other similar items. Gross
a QTP to an ABLE account. For a Coverdell ESA, check this
distributions also include a refund to the account owner or
box if the distribution was made directly to another Coverdell
the designated beneficiary, or to the beneficiary upon death
ESA or to a QTP.
or disability. For more information on reporting distributions,
In a trustee-to-trustee transfer between qualified
see Proposed Regulations section 1.529-4.
education programs, the distributing program must provide
you with a statement reporting the earnings portion of the
Gross distributions from a Coverdell ESA include amounts
distribution within 30 days of the distribution or by January
for a refund, a payment upon death or disability, or a
10, whichever is earlier. You must properly account for this in
withdrawal of excess contributions plus earnings.
figuring the earnings or (loss) reported in box 2 and the basis
If earnings and basis are not reported for Coverdell
reported in box 3.
ESA distributions, leave boxes 2 and 3 blank. Do not
!
If you do not have records showing that a gross
enter zero. Instead, you must report the fair market
CAUTION
distribution from a Coverdell ESA made in 2019 was
value (FMV) as of the end of the year in the blank box below
TIP
a trustee-to-trustee transfer, leave box 4 blank.
boxes 5 and 6. Label the amount “FMV.” See Notice
2003-53, 2003-33 I.R.B. 362, available at
IRS.gov/irb/
Box 5. Checkbox
2003-33_IRB/ar15.html, for more reporting requirements.
Check the “Private” box if the distribution is from a QTP
Box 2. Earnings
established by one or more private eligible educational
institutions, or check the “State” box if the distribution is from
To determine the earnings or (loss) on the gross distribution
a QTP established by a state. Otherwise, check the
reported in box 1, use the earnings ratio described in
“Coverdell ESA” box.
Proposed Regulations section 1.529-3, Notice 2001-81, and
Notice 2016-13. You can find Notice 2001-81 on page 617 of
Box 6. Designated Beneficiary Checkbox
Internal Revenue Bulletin 2001-52 at
IRS.gov/pub/irs-irbs/
Check the box if the recipient is not the designated
irb01-52.pdf
and Notice 2016-13 at
IRS.gov/irb/
beneficiary under a QTP or a Coverdell ESA (see section
2016-07_IRB/ar06.html.
529(e)(1)).
Enter the earnings in box 2. If there is a loss and this is not
Distribution Codes
the final year for distributions from the account or there are
no earnings, enter zero in box 2. Enter a loss in box 2 only if
For 2019, you may, but are not required to, include one of the
this is the final year for distributions from the account.
following distribution codes in the blank box below boxes 5
Earnings are not subject to backup withholding.
and 6. You may abbreviate as needed. For example, for
distribution code 1, you may enter “distr. code 1.”
If you are reporting a distribution from a Coverdell ESA
that includes a returned contribution plus earnings, you
should file two Forms 1099-Q, one to report the returned
Distribution Code
Use this code for...
contribution plus earnings, the other to report the distribution
1–Distributions
Distributions (including transfers) to
of the other part of the account.
the recipient and any direct
You should file a separate Form 1099-Q for any
payments to a qualified educational
facility. However, use code 2 or 3
trustee-to-trustee transfer.
for withdrawals of excess
contributions.
For Coverdell ESAs, if you are not reporting earnings, see
the Caution above.
2–Excess contributions plus
Withdrawals of excess Coverdell
earnings taxable in 2019
ESA contributions and earnings
For Coverdell ESAs, if you are reporting earnings on
unless code 3 applies.
a distribution of excess contributions, use the method
TIP
3–Excess contributions plus
Withdrawals of excess
under Regulations section 1.408-11 for figuring the
earnings taxable in 2018
contributions from a Coverdell ESA.
net income attributable to IRA contributions that are
Advise payees, at the time the
distributed as a returned contribution.
distribution is made, that the
earnings are taxable in the year in
If the amount in box 2 includes earnings on excess
which the excess contributions
contributions, enter distribution code 2 or 3 (as applicable) in
were made.
the box below boxes 5 and 6 (below the shading). See
4–Disability
Distributions you made after the
Notice 2003-53 for more information.
recipient was disabled (see section
72(m)(7)).
Box 3. Basis
5–Death
Payments to a decedent's
For QTPs and Coverdell ESAs, if you can determine basis,
beneficiary, including an estate.
enter in box 3 the basis included in the gross distribution
6–Prohibited transaction
Prohibited transactions. See
reported in box 1. The amount in box 3 must equal box 1
sections 408(e)(2) and 408(e)(4) for
minus box 2.
similar rules that apply to a
Coverdell ESA.
For determining basis of a Coverdell ESA, you may
rely on Notice 2001-81.
TIP
-2-
Instructions for Form 1099-Q (2019)
Page of 2