IRS Form 1099-Q Instructions for 2025

Form 1099-Q Overview

Form 1099-Q is an IRS tax form used to report distributions from a qualified educational program, including the 529 plan or a Coverdell Education Savings Account (Coverdell ESA). These distributions or rollovers can be taxable depending on how the beneficiary spends them.

This form must be completed by the administrator of the account or the individuals that contribute to the qualified
educational program.

For instance, if someone has contributed money to a 529 plan or Coverdell Education Savings Account (Coverdell ESA) and nominated you as the beneficiary, you will receive Form 1099-Q when you start using the funds from the program.

What are the Requirements for Filing
Form 1099-Q?

The IRS requires the following information to be reported on Form 1099-Q:

Payers' Information (Name, address, telephone number)

• Payers' TIN
• Recipient TIN

Recipient Information (Name, address, telephone number)

• Gross Distribution
• Earnings
• Basic

Account Number (the account number is required when the filer reports more than one Form 1099-Q and uses multiple accounts for the recipient.)

What are the Line by Line instructions to Complete your Form 1099-Q?

Form 1099-Q consists of six boxes. Here we have broken down Form 1099-Q and explained in detail the information required in each box.

• Box 1:

  Is used to report the gross distribution paid over the past year from a QTP or Coverdell ESA (including cash and in-kind distributions).

• Box 2:

  Is used to report the earning part of the gross distribution from Box 1.

• Box 3:

  Is used to report the basics of the gross distribution reported in Box 1.

• Boxes 4a–4b:

  Indicate whether the distribution was a trustee-to-trustee transfer between QTPs, from a QTP to an ABLE account, or from a QTP to a Roth IRA.

• Boxes 5a–5c:

  Specify whether the distribution came from a private QTP, a state-sponsored QTP, or a Coverdell ESA.

• Box 6:

  reports whether or not the recipient is the designated beneficiary.

When is the Deadline for Filing Form 1099-Q?

Like other IRS forms, Form 1099-Q has three different deadlines for recipient copies, paper filing, and electronic filing, and here are the deadlines for the 2025 tax year:

• Recipient Copy - The deadline for sending the recipient copy falls on February 2, 2026.
• Paper Copy - The deadline for filing paper copies is March 2, 2026.
• E-Filing - The deadline for e-filing Form 1099-Q falls on March 31st, 2026.

What Are the New Changes to Form 1099-Q for the 2025 Tax Year?

For the 2025 tax year, the IRS has made key updates to Form 1099-Q, which reports distributions from Qualified Education Programs under sections 529 and 530. These updates focus on improving clarity when reporting the type and source of distributions.

• Boxes 4a–4b (Type of Transfer): This section has been revised to indicate the type of trustee-to-trustee transfer made from an education account.

  • Box 4a: Select this if the distribution was a trustee-to-trustee transfer between Qualified Tuition Programs (QTPs), to another Coverdell ESA, or from a QTP to an ABLE account.
  • Box 4b: Select this if the distribution was transferred directly from a QTP to a Roth IRA for the benefit of the account beneficiary.
  

  If there’s no clear documentation that a Coverdell ESA distribution was a trustee-to-trustee transfer, leave Box 4a blank.

• Boxes 5a–5c (Source of Distribution): The IRS has revised this section to specify the source of the distributed funds.

  • Box 5a: Use this if the distribution is from a private QTP, established by one or more eligible private educational institutions.
  • Box 5b: Use this if the distribution is from a state-sponsored QTP.
  • Box 5c: Use this if the distribution is from a Coverdell ESA.

These revisions ensure more accurate reporting and help the IRS and taxpayers distinguish between different types of education-related distributions.

What are the Advantages of E-Filing Form
1099-Q with TaxBandits?

E-file Form 1099-Q with TaxBandits offers many benefits and features that simplify the process of filing
Form 1099-Q.

TaxBandits audits the forms you complete against the IRS Business Rules to ensure their accuracy. This greatly reduces the chances that you will need to file a correction form. There is also a bulk upload feature that offers a shortcut for uploading and filing a high volume of form data.

Here are a few more ways that TaxBandits simplifies your e-filing process!

• API Integrations and White Labeling available
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