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Form 1099-Q - Qualified Tuition Program Payments (Section 529 State Tuition Programs)
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You will receive a Form 1099-Q from each of the state programs from which you received a Qualified Tuition Program (QTP) distribution in the tax year. The amount of your gross distribution (Box 1) shown on each form will be divided between your earnings (Box 2) and your basis or return of investment (Box 3). The part of a distribution representing the amount paid or contributed to a QTP does not have to be included in income. This is a return of the investment in the plan. The designated beneficiary generally does not have to include in income any earnings distributed from a QTP if the total distribution is less than or equal to adjusted qualified education expenses. The taxable amount of any distributed earnings is calculated automatically by the program. 

Entering Form 1099-Q

To enter Form 1099-Q Payments From Qualified Education Programs (Under Sections 529 and 530), follow these steps: 
  1. Open your TaxAct return, click Federal.
    • On smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Education drop down, then click Education program payments (Form 1099-Q).
  3. Click + Add Form 1099-Q to create a new copy of the form.
  4. Continue with the interview process to enter your information.
  5. Click Federal.
  6. Click the Education drop down, then click Student Worksheet (tuition, scholarships).
  7. Click + Add Student Information to create a new student worksheet.
  8. Continue with the interview process to enter your information.