IRS Form 1099-Q Instructions
for 2023

1. 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.

2. 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.)

3. 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.

• Box 4: should be checked off if it is a trustee to trustee transfer, which includes a rollover from QTP (Qualified Training Program)

• Box 5: reports whether the gross distribution was from QTP or
  Coverdell ESA.

• Box 6: reports whether or not the recipient is the designated beneficiary.