Form 1099-Q

DEFINITION of 'Form 1099-Q'

An IRS form that an individual who receives distributions from a Coverdell Education Savings Account (ESA) receives from his or her respective investment company. The form is used by the individual to fill out both federal and state tax returns.

BREAKING DOWN 'Form 1099-Q'

Specifically, this form will identify the amount of gross distributions that have been made from the account over the year being reported. The gross distributions that have been made are then compared to the educational expenses that have been incurred over the year. If the gross distributions exceed qualified education expenses then the excess is taxable. However, if the expenses are greater than the distributions, the individual may use the subsequent excess as an additional tax credit.

RELATED TERMS
  1. Coverdell Education Savings Account ...

    A tax-deferred trust account created by the U.S. government to ...
  2. Form 1099-R

    An Internal Revenue Service (IRS) form with which an individual ...
  3. Education IRA

    A savings plan for higher education. Parents and guardians are ...
  4. Non-Qualified Distribution

    1) A distribution from a Roth IRA that occurs before the Roth ...
  5. Lifetime Learning Credit

    A provision of the U.S. federal income tax code that lets parents ...
  6. Form 1099-DIV

    A form sent to investors by investment fund companies. The form ...
Related Articles
  1. Personal Finance

    Why Coverdell ESAs May Trump 529 Plans

    Coverdell ESAs still trail 529 plans in popularity by a wide margin due to their low contribution limits. But these accounts can be a viable alternative.
  2. Personal Finance

    Education Savings Account Tutorial

    This comprehensive guide goes through what an Education Savings Plan is and how to set one up, contribute to it and withdraw from it.
  3. Investing

    Education Savings Account: Avoiding Taxes On Distributions

    By Reyna Gobel ESAs are technically considered tax-advantaged accounts. If your child pays any tax on earnings or contributions, it's because you've disobeyed the ESA rules. We'll look at the ...
  4. Retirement

    Don't Forget The Kids: Save For Their Education And Retirement

    Retirement and education financing are the two most important planning items for taxpayers.
  5. Financial Advisor

    Advising FAs: Explaining College Savings Accounts to Clients

    There are several types of savings accounts designed for higher education available today. The right one for you will depend upon factors such as your tax bracket, time horizon, investment objectives ...
  6. Personal Finance

    Explaining Tax Returns

    A tax return is the form or forms used to file income taxes with the IRS.
  7. Personal Finance

    What's IRS Form 1040 For?

    Most U.S. taxpayers will be familiar with the 1040. By the end of filling it out, you'll know how much tax you owe, or what your refund is.
  8. Personal Finance

    Spoil Your Grandkids, Cut Your Tax Bill

    Helping your grandchildren save for college is a way to spoil them and reap some benefits yourself.
  9. Retirement

    Combining Your Plan Assets? Not So Fast!

    You might reduce the costs of maintaining more than one account, but you could also be forfeiting tax benefits.
  10. Financial Advisor

    How to Navigate Taxable Mutual Fund Distributions

    It's almost time for year-end capital gains distributions for mutual funds. Here's how to monitor them and minimize their tax impact.
RELATED FAQS
  1. What is the best way to save for private school expenses? A 529 plan, a Coverdell ...

    If the goal is to put the money in the plan towards private school expenses, then the Coverdell Education Savings Account ... Read Answer >>
  2. Can I elect to NOT have income tax withheld from an IRA (NOT ROTH) distribution before ...

  3. Can I contribute to both a 529 plan and a Coverdell education savings account?

    You can contribute to both, and when your child is ready to attend college, as colleges do accept payments from both. There ... Read Answer >>
  4. A parent would choose to set up a Coverdell Education Savings Account for a child ...

    A parent would choose to set up a Coverdell Education Savings Account for a child in order to save for college expenses AND: ... Read Answer >>
  5. I have an IRA with after-tax money in it. How do I avoid being taxed again?

  6. Are estate distributions taxable?

    Discover how estates are taxed, why estate distributions are generally tax-free, and circumstances that may require an heir ... Read Answer >>
Hot Definitions
  1. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  2. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  3. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  4. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
  6. Security

    A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship ...
Trading Center