The recipient listed on Form 1099-Q should report the distribution on his or her tax return. If the recipient is a family member, the distribution has to be reported on that person’s tax return, not your return.
Keep reading to understand when to list a beneficiary as a distribution recipient for a qualified tuition program or Coverdell Education Savings Account
For a qualified tuition program (QTP) or Section 529 Plan, the beneficiary should be listed as the recipient only if the distribution is made:
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.