E-File Form 1099-Q Online to Report Qualified Education Program Distributions

Anyone with control of a state or private QTP, or serving as trustee of a Coverdell ESA, must file Form
1099-Q for every reportable distribution. This includes the officer, employee, or designee who administers a state-run 529 plan, an official at a private eligible educational institution running its own QTP, and any bank or brokerage acting as a Coverdell
ESA trustee.

There's no dollar threshold that exempts small distributions. If a distribution is reportable, you must issue a Form 1099-Q.

Form 1099-Q includes a new checkbox 4b for reporting qualified tuition program (QTP) to Roth IRA transfers. Box 4a continues to be used for trustee-to-trustee transfers.

Taxpayers may also roll over limited amounts from a QTP to an Achieving a Better Life Experience (ABLE) account within 60 days of the distribution. Report these distributions by checking box 4a and entering distribution code 1 in box 7.

Click here to learn more about the 2026 Form 1099 changes.

Recipient copies are due by February 1, 2027. The IRS filing deadline is March 1, 2027 for paper returns and March 31, 2027 for electronic returns. If any of these dates fall on a weekend or holiday, the deadline moves to the next business day.

There's no dollar-amount exemption, but a few specific transactions are excluded from reporting entirely. You don't need to file a Form 1099-Q for a change in designated beneficiary on a QTP account when the new beneficiary is a family member of the old one, and the same family-member rule applies to a Coverdell ESA beneficiary change, provided the new beneficiary is under age 30 (except for beneficiaries with
special needs).

The IRS may charge $60 to $340 per return for late or incorrect Form 1099-Q filings. Intentional disregard can result in a penalty of $680, with no annual maximum.

The other tiers are capped annually — for returns due in 2027, $244,500 to $1,397,000 for small businesses (average annual gross receipts of $5 million or less) and $698,500 to $4,191,500 for larger filers. Amounts are indexed for inflation each year.

Learn more about 1099-Q penalties.

You can request an automatic 30-day extension to file with the IRS by submitting Form 8809 on or before the original due date. Unlike Form W-2 or Form 1099-NEC, Form 1099-Q qualifies for this automatic extension, so no hardship explanation is required.

If you also need more time to furnish recipient copies, file Form 15397 by that same original due date; that extension is not automatic and requires you to state the reason more time
is needed.