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.


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.

  1. Coverdell Education Savings Account ...

    A tax-deferred trust account created by the U.S. government to ...
  2. Income Tax

    A tax that governments impose on financial income generated by ...
  3. 529 Plan

    A plan that allows for the prepayment of qualified higher education ...
  4. Full-Time Student

    A status that is important for determining dependency exemptions. ...
  5. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  6. Education IRA

    A savings plan for higher education. Parents and guardians are ...
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