What is a 'Form 1099-Q'

A Form 1099-Q is an IRS form that an individual who receives distributions from a Coverdell Education Savings Account (ESA) or 529 plan receives from his or her respective investment company. The form is used by the individual to fill out both federal and state tax returns.


A Form 1099-Q will identify the amount in gross distributions that has been made from the account over the year being reported. These gross distributions 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 toward an education tax credit.

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