Entering 1099-Q for a non-dependent?

Forum|Forum|3 years ago
March 29, 2023
1 reply
8 views

What is the correct way to enter a 1099-Q for a QTP distribution when the recipient is *not* a dependent of the taxpayer?

I have a grandparent who established the 529 accounts, and takes the distributions and mails them to the colleges. Each year he has gotten an audit for the distribution to his grandchildren, so I must be doing something wrong.

Lacerte throws a diag if I enter the name and SSN of the beneficiary.

Lacerte Tax

This topic has been closed for replies.

rbynaker

Level 13

If it's not taxable it doesn't go anywhere. I wish the IRS would come up with a "traveling" student form whereby a copy could be filed with everyone who needs it showing qualified expenses, etc.

You can try to disclose with a statement but I doubt that would help (wouldn't hurt). The best approach IMO would be to have the grandparent direct the 529 plan to send the payment directly to the school. Then the 1099-Q would come in the beneficiary's name where it can be docu-matched with the 1098-T.

Rick

T

TaxGirl3

Level 5

I create a statement every time. Knock on wood, never had an issue.

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