Get Coverdell Education Savings Distribution Request Form

You'll receive an IRS Form 1099-Q when you withdrawal money from a 529 plan or a Coverdell Education Savings Account (Coverdell ESA).

Your child can receive tax-free withdrawals from a Coverdell ESA in any year to the extent that he or she incurs qualified education expenses (QEE). If your child withdraws more than the amount of QEE, then the earnings portion of that excess is subject to income tax and an additional 10% penalty tax.

1099-Q Reporting Distributions from a Coverdell Education Savings Account are reported on Form 1099-Q. Form 1099-Q is reported on your tax return by visiting the: Federal Section. Income.

You should receive a Form 1099-Q, Payments from Qualified Education Programs (Under Sections 529 and 530) from each of the Coverdell ESAs from which you received a distribution. Form 1099-Q should be made available to you by January 31, 2023.

There's often confusion about who uses the 1099-Q for their tax return: the beneficiary student or the owner of the account (who may be a parent or other relative). The person who receives the funds and whose Social Security number is on the form has to report the 1099-Q on their tax return.

The distributions are tax-free to the extent the amount of the distributions doesn't exceed the beneficiary's qualified education expenses. If a distribution exceeds the beneficiary's qualified education expenses, a portion of the earnings is taxable to the beneficiary.

You'll receive an IRS Form 1099-Q when you withdrawal money from a 529 plan or a Coverdell Education Savings Account (Coverdell ESA).

Form 1099-Q should be filed by officers or employees who have control of a program and manage your 529 plan or Coverdell ESA. If you set up the account and make contributions to it, you are the owner and are the recipient of the 1099-Q.