Form 1099-Q - Taxable to Recipient or Designated Beneficiary

The recipient listed on Form 1099-Q should report the distribution on his or her tax return. If the listed recipient is another member of your family, the distribution must be reported on that person's tax return rather than on your return.

For a qualified tuition program (QTP or Section 529 Plan), the beneficiary should be listed as the recipient only if the distribution is made:

  • directly to the designated beneficiary, or
  • to an eligible educational institution for the benefit of the designated beneficiary.

Otherwise, the account owner should be listed as the recipient of the distribution.

For a Coverdell ESA, the designated beneficiary should be listed as the recipient.

If the reporting of your distribution does not meet these criteria, contact the payer/trustee for clarification.

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