Form 1099 Q and Instructions
Payments From Qualified Education 
Programs (Under Sections 529 and 530)
(Rev. November 2019)
Catalog Number 32223J
OMB No. 1545-1760

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Form 1099-Q
Payments From Qualified Education Programs (Under Sections 529 and 530)

3131

-- VOID
-- CORRECTED

OMB No. 1545-1760
(Rev. November 2019)
For calendar year 20 ----

PAYER'S/TRUSTEE'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. ----
PAYER'S/TRUSTEE'S TIN ----
RECIPIENT'S TIN ----
RECIPIENT'S name ----
Street address (including apt. no.) ----
City or town, state or province, country, and ZIP or foreign postal code ----
Account number (see instructions) ----

1 Gross distribution $ ----
2 Earnings $ ----
3 Basis $ ----
4 Trustee-to-trustee transfer --
5 Distribution is from:
 Qualified tuition program
Private --
or State --
 Coverdell ESA --
6 Check if the recipient is not the designated beneficiary --

Copy A

For Internal Revenue Service Center

File with Form 1096.

For Privacy Act and Paperwork Reduction Act Notice, see the current General Instructions for Certain Information Returns.

Form 1099-Q (Rev. 11-2019)
Cat. No. 32223J
www.irs.gov/Form1099Q
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page  Do Not Cut or Separate Forms on This Page

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Form 1099-Q
Payments From Qualified Education Programs (Under Sections 529 and 530)

-- CORRECTED (if checked)
OMB No. 1545-1760
(Rev. November 2019)
For calendar year 20 ----

PAYER'S/TRUSTEE'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. ----
PAYER'S/TRUSTEE'S TIN ----
RECIPIENT'S TIN ----
RECIPIENT'S name ----
Street address (including apt. no.) ----
City or town, state or province, country, and ZIP or foreign postal code ----
Account number (see instructions) ----

1 Gross distribution $ ----
2 Earnings $ ----
3 Basis $ ----
4 Trustee-to-trustee transfer --
5 Distribution is from:
 Qualified tuition program
Private --
or State --
 Coverdell ESA --
6 If this box is checked, the recipient is not the designated beneficiary --

If the fair market value (FMV) is shown below, see Pub. 970, Tax Benefits for Education, for how to figure earnings. ----

Copy B

For Recipient

This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported.

Form 1099-Q (Rev. 11-2019)
(keep for your records)
www.irs.gov/Form1099Q
Department of the Treasury - Internal Revenue Service

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Instructions for Recipient

Distributions from Coverdell education savings accounts (CESAs) under section 530 and qualified tuition programs (QTPs) under section 529, including rollovers, may be taxable. Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution. See Pub. 970 and the Instructions for Forms 1040 and 1040-SR for more information. Also see Form 5329 and its separate instructions.

Recipient's taxpayer identification no. (TIN). For your protection, this form may show only the last four digits of your TIN (SSN, ITIN, ATIN, or EIN). However, the payer or trustee has reported your complete TIN to the IRS.

Account number. May show an account or other unique number the payer has assigned to distinguish your account.

Box 1. Shows the gross distribution (including in-kind distributions) paid to you this year from a QTP or a CESA. This amount is the total of the amounts shown in boxes 2 and 3. See Pub. 970 for more information.

Caution: For CESA distributions (other than earnings on excess contributions) made during the calendar year, the payer/trustee is not required to report amounts in boxes 2 and 3. Instead, the payer/trustee may report the fair market value of the CESA as of December 31 of the calendar year in the blank box below boxes 5 and 6. To figure your earnings and basis, use the Coverdell ESATaxable Distributions and Basis worksheet in Pub. 970.

Box 2. Shows the earnings part of the gross distribution shown in box 1. Generally, amounts distributed that are used to pay for qualified education expenses, transferred between trustees, or rolled over to another qualified education program or to an ABLE account, within 60 days, are not included in income.

Under a QTP, the amount in box 2 is included in income if there has been (a) more than one transfer or rollover within any 12-month period with respect to the same beneficiary, or (b) a change in the designated beneficiary and the new designated beneficiary is not a family member.

Under a CESA, the amount in box 2 is included in income if there has been a change in the designated beneficiary and the new designated beneficiary is not a family member or is over age 30 (except for beneficiaries with special needs).

Also, an additional 10% tax may apply to part or all of any amount included in income from the CESA or QTP. See Form 5329 and your tax return instructions for more information.

If a final (total) distribution is made from your account and you have not recovered your contributions, see Pub. 970 to determine if you have a deductible loss and how to claim it.

Box 3. Shows your basis in the gross distribution reported in box 1.

Box 4. This box is checked if a trustee-to-trustee transfer was made from one QTP to another QTP, from one CESA to another CESA, from a CESA to a QTP, or from a QTP to an ABLE account. However, in certain transfers from a CESA, the box will be blank.

Box 5. Shows whether the gross distribution was from a QTP (private or state) or from a CESA.

Box 6. The designated beneficiary is the individual named in the document creating the trust or custodial account to receive the benefit of the funds in the account. If you are not the designated beneficiary, see Pub. 970 and the Instructions for Forms 1040 and 1040-SR.

Distribution codes. For the calendar year, the payer/trustee may, but is not required to, report (in the box below boxes 5 and 6) one of the following codes to identify the distribution you received: 1Distributions (including transfers); 2Excess contributions plus earnings taxable in the calendar year; 3Excess contributions plus earnings taxable in the prior calendar year; 4Disability; 5Death; or 6Prohibited transaction.

Future developments. For the latest information about developments related to Form 1099-Q and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form1099Q.

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Form 1099-Q
Payments From Qualified Education Programs (Under Sections 529 and 530)

-- VOID
-- CORRECTED
OMB No. 1545-1760
(Rev. November 2019)
For calendar year 20 ----

PAYER'S/TRUSTEE'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. ----
PAYER'S/TRUSTEE'S TIN ----
RECIPIENT'S TIN ----
RECIPIENT'S name ----
Street address (including apt. no.) ----
City or town, state or province, country, and ZIP or foreign postal code ----
Account number (see instructions) ----

1 Gross distribution $ ----
2 Earnings $ ----
3 Basis $ ----
4 Trustee-to-trustee transfer --
5 Distribution is from:
 Qualified tuition program
Private --
or State --
 Coverdell ESA --
6 Check if the recipient is not the designated beneficiary --

Copy C

For Payer

For Privacy Act and Paperwork Reduction Act Notice, see the current General Instructions for Certain Information Returns.

Form 1099-Q (Rev. 11-2019)
www.irs.gov/Form1099Q
Department of the Treasury - Internal Revenue Service

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Instructions for Payer/Trustee

To complete Form 1099-Q, use:

 The current General Instructions for Certain Information Returns, and
 The current Instructions for Form 1099-Q.

To order these instructions and additional forms, go to www.irs.gov/Form1099Q.

Filing and furnishing. For filing and furnishing instructions, including due dates, and to request filing or furnishing extensions, see the current General Instructions for Certain Information Returns.

To file electronically, you must have software that generates a file according to the specifications in Pub. 1220.

Need help? If you have questions about reporting on Form 1099-Q, call the information reporting customer service site toll free at 866-455-7438 or 304-263-8700 (not toll free). Persons with a hearing or speech disability with access to TTY/TDD equipment can call 304-579-4827 (not toll free).

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Instructions for Form 1099-Q

Department of the Treasury Internal Revenue Service
(Rev. November 2019)

Payments From Qualified Education Programs (Under Sections 529 and 530)

Section references are to the Internal Revenue Code unless otherwise noted.

Future Developments

For the latest information about developments related to Form 1099-Q and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form1099Q.

Reminders

In addition to these specific instructions, you should also use the current General Instructions for Certain Information Returns. Those general instructions include information about the following topics.

 Who must file.
 When and where to file.
 Electronic reporting.
 Corrected and void returns.
 Statements to recipients.
 Taxpayer identification numbers (TINs).
 Backup withholding.
 Penalties.
 Other general topics.

You can get the General Instructions for Certain Information Returns at IRS.gov/1099GeneralInstructions, or go to IRS.gov/Form1099Q.

Continuous-use form and instructions. Form 1099-Q and these instructions have been converted from an annual revision to continuous use. Both the form and instructions will be updated as needed. For the most recent version, go to IRS.gov/Form1099Q.

Online fillable form. Due to the very low volume of paper Forms 1099-Q received and processed by the IRS each year, this form has been converted to an online fillable format. You may fill out the form, found online at IRS.gov/Form1099Q, and send Copy B to the recipient. For filing with the IRS, follow the applicable procedures if you are required to file electronically, or, for this form only, if you are qualified to file on paper, send in the black-and-white Copy A with Form 1096 that you print from the IRS website.

Specific Instructions

File Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530), if you (a) are an officer or an employee, or the designee of an officer or employee, having control of a program established by a state or eligible educational institution; and (b) made a distribution from a qualified tuition program (QTP). A trustee of a Coverdell education savings account (ESA) must file Form 1099-Q to report distributions made from Coverdell ESAs.

Do not file Form 1099-Q for a change in the name of the designated beneficiary on a QTP account if the new beneficiary is a member of the former beneficiary's family. For a Coverdell ESA, the new beneficiary must be a member of the designated beneficiary's family and be under age 30 (except beneficiaries with special needs).

Family members of the designated beneficiary include the beneficiary's spouse. Also included are the beneficiary's children, stepchildren, foster children, and their descendants; siblings and their children; parents, their siblings, and ancestors; stepparents; in-laws; the spouse of any of the foregoing; and any first cousin of the designated beneficiary.

Statements to Recipients

If you are required to file Form 1099-Q, you also must furnish a statement to the recipient. Furnish a copy of Form 1099-Q or an acceptable substitute statement to each recipient. See part M in the current General Instructions for Certain Information Returns.

Truncating recipient's TIN on payee statements. Pursuant to Regulations section 301.6109-4, all filers of this form may truncate a recipient's TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)) on payee statements. Truncation is not allowed on any documents the filer files with the IRS. A payer's/trustee's TIN may not be truncated on any form. See part J in the current General Instructions for Certain Information Returns.

Payer's Name and TIN

QTP. For the payer's/trustee's name and TIN, enter the name and EIN of the QTP. For a program established and maintained by a state that uses the EIN of the state, enter the name of the state on the first name line and the name of the program on the second name line.

Coverdell ESA. Enter the name and EIN of the trustee.

Recipient's Name and TIN

QTP. List the designated beneficiary as the recipient only if the distribution is made (a) directly to the designated beneficiary, or (b) to an eligible educational institution for the benefit of the designated beneficiary. Otherwise, list the account owner as the recipient of the distribution. Enter the TIN for the applicable recipient.

Coverdell ESA. Enter the name and TIN of the designated beneficiary as the recipient.

Account Number

The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1099-Q. Additionally, the IRS encourages you to designate an account number for all Forms 1099-Q that you file. See part L in the current General Instructions for Certain Information Returns.

Box 1. Gross Distribution

Gross distributions from a QTP, whether in cash or in-kind, include amounts for tuition credits or certificates, payment vouchers, tuition waivers, or other similar items. Gross

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distributions also include a refund to the account owner or the designated beneficiary, or to the beneficiary upon death or disability. For more information on reporting distributions, see Proposed Regulations section 1.529-4.

Gross distributions from a Coverdell ESA include amounts for a refund, a payment upon death or disability, or a withdrawal of excess contributions plus earnings.

CAUTION! If earnings and basis are not reported for Coverdell ESA distributions, leave boxes 2 and 3 blank. Do not enter zero. Instead, you must report the fair market value (FMV) as of the end of the year in the blank box below boxes 5 and 6. Label the amount "FMV." See Notice 2003-53, 2003-33 I.R.B. 362, available at IRS.gov/irb/2003-33_IRB#
NOT-2003-53, for more reporting requirements.

Box 2. Earnings

To determine the earnings or (loss) on the gross distribution reported in box 1, use the earnings ratio described in Proposed Regulations section 1.529-3, Notice 2001-81, and Notice 2016-13. You can find Notice 2001-81 on page 617 of Internal Revenue Bulletin 2001-52 at 
IRS.gov/pub/irs-irbs/
irb01-52.pdf and Notice 2016-13 at IRS.gov/irb/2016-07_IRB#
NOT-2016-13.

Enter the earnings in box 2. If there is a loss and this is not the final year for distributions from the account or there are no earnings, enter zero in box 2. Enter a loss in box 2 only if this is the final year for distributions from the account. Earnings are not subject to backup withholding.

If you are reporting a distribution from a Coverdell ESA that includes a returned contribution plus earnings, you should file two Forms 1099-Q, one to report the returned contribution plus earnings, the other to report the distribution of the other part of the account.

You should file a separate Form 1099-Q for any trustee-to-trustee transfer.

For Coverdell ESAs, if you are not reporting earnings, see the Caution above.

TIP For Coverdell ESAs, if you are reporting earnings on a distribution of excess contributions, use the method under Regulations section 1.408-11 for figuring the net income attributable to IRA contributions that are distributed as a returned contribution.

If the amount in box 2 includes earnings on excess contributions, enter distribution code 2 or 3 (as applicable) in the box below boxes 5 and 6 (below the shading). See Notice 2003-53 for more information.

Box 3. Basis

For QTPs and Coverdell ESAs, if you can determine basis, enter in box 3 the basis included in the gross distribution reported in box 1. The amount in box 3 must equal box 1 minus box 2.

TIP For determining basis of a Coverdell ESA, you may rely on Notice 2001-81.

Box 4. Trustee-to-Trustee Transfer Checkbox

Check this box if the distribution was made directly (trustee-to-trustee transfer) from one QTP to another, or from a QTP to an ABLE account. For a Coverdell ESA, check this box if the distribution was made directly to another Coverdell ESA or to a QTP.

In a trustee-to-trustee transfer between qualified education programs, the distributing program must provide you with a statement reporting the earnings portion of the distribution within 30 days of the distribution or by January 10, whichever is earlier. You must properly account for this in figuring the earnings or (loss) reported in box 2 and the basis reported in box 3.

TIP If you do not have records showing that a gross distribution from a Coverdell ESA made in the current year was a trustee-to-trustee transfer, leave box 4 blank.

Box 5. Checkbox

Check the "Private" box if the distribution is from a QTP established by one or more private eligible educational institutions, or check the "State" box if the distribution is from a QTP established by a state. Otherwise, check the "Coverdell ESA" box.

Box 6. Designated Beneficiary Checkbox

Check the box if the recipient is not the designated beneficiary under a QTP or a Coverdell ESA (see section 529(e)(1)).

Distribution Codes

For the current year, you may, but are not required to, include one of the following distribution codes in the blank box below boxes 5 and 6. You may abbreviate as needed. For example, for distribution code 1, you may enter "distr. code 1."

Distribution Code: Use this code for...
1-Distributions: Distributions (including transfers) to the recipient and any direct payments to a qualified educational facility. However, use code 2 or 3 for withdrawals of excess contributions.
2-Excess contributions plus earnings taxable in current year: Withdrawals of excess Coverdell ESA contributions and earnings unless code 3 applies.
3-Excess contributions plus earnings taxable in prior year: Withdrawals of excess contributions from a Coverdell ESA. Advise payees, at the time the distribution is made, that the earnings are taxable in the year in which the excess contributions were made.
4-Disability: Distributions you made after the recipient was disabled (see section 72(m)(7)).
5-Death: Payments to a decedent's beneficiary, including an estate.
6-Prohibited transaction: Prohibited transactions. See sections 408(e)(2) and 408(e)(4) for similar rules that apply to a Coverdell ESA.

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