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Department of the Treasury
Internal Revenue Service
Instructions for

Form 1099-Q

(Rev. November 2019)
Payments From Qualified Education Programs (Under Sections 529 and 530)

Section references are to the Internal Revenue Code unless Family members of the designated beneficiary include the
otherwise noted. beneficiary's spouse. Also included are the beneficiary's
children, stepchildren, foster children, and their descendants;
Future Developments siblings and their children; parents, their siblings, and
For the latest information about developments related to ancestors; stepparents; in-laws; the spouse of any of the
Form 1099-Q and its instructions, such as legislation enacted foregoing; and any first cousin of the designated beneficiary.
after they were published, go to IRS.gov/Form1099Q.
Statements to Recipients
Reminders If you are required to file Form 1099-Q, you also must furnish
In addition to these specific instructions, you should also use a statement to the recipient. Furnish a copy of Form 1099-Q
the current General Instructions for Certain Information or an acceptable substitute statement to each recipient. See
Returns. Those general instructions include information part M in the current General Instructions for Certain
about the following topics. Information Returns.
• Who must file. Truncating recipient’s TIN on payee statements.
• When and where to file. Pursuant to Regulations section 301.6109-4, all filers of this
• Electronic reporting. form may truncate a recipient’s TIN (social security number
• Corrected and void returns. (SSN), individual taxpayer identification number (ITIN),
• Statements to recipients. adoption taxpayer identification number (ATIN), or employer
• Taxpayer identification numbers (TINs). identification number (EIN)) on payee statements. Truncation
• Backup withholding. is not allowed on any documents the filer files with the IRS. A
• Penalties. payer’s/trustee's TIN may not be truncated on any form. See
• Other general topics. part J in the current General Instructions for Certain
You can get the General Instructions for Certain Information Returns.
Information Returns at IRS.gov/1099GeneralInstructions, or
go to IRS.gov/Form1099Q. Payer's Name and TIN
Continuous-use form and instructions. Form 1099-Q and QTP. For the payer's/trustee's name and TIN, enter the
these instructions have been converted from an annual name and EIN of the QTP. For a program established and
revision to continuous use. Both the form and instructions will maintained by a state that uses the EIN of the state, enter the
be updated as needed. For the most recent version, go to name of the state on the first name line and the name of the
IRS.gov/Form1099Q. program on the second name line.
Online fillable form. Due to the very low volume of paper Coverdell ESA. Enter the name and EIN of the trustee.
Forms 1099-Q received and processed by the IRS each
year, this form has been converted to an online fillable Recipient's Name and TIN
format. You may fill out the form, found online at IRS.gov/
QTP. List the designated beneficiary as the recipient only if
Form1099Q, and send Copy B to the recipient. For filing with
the distribution is made (a) directly to the designated
the IRS, follow the applicable procedures if you are required
beneficiary, or (b) to an eligible educational institution for the
to file electronically, or, for this form only, if you are
benefit of the designated beneficiary. Otherwise, list the
qualified to file on paper, send in the black-and-white Copy A
account owner as the recipient of the distribution. Enter the
with Form 1096 that you print from the IRS website.
TIN for the applicable recipient.
Coverdell ESA. Enter the name and TIN of the designated
Specific Instructions beneficiary as the recipient.
File Form 1099-Q, Payments From Qualified Education
Programs (Under Sections 529 and 530), if you (a) are an Account Number
officer or an employee, or the designee of an officer or The account number is required if you have multiple
employee, having control of a program established by a state accounts for a recipient for whom you are filing more than
or eligible educational institution; and (b) made a distribution one Form 1099-Q. Additionally, the IRS encourages you to
from a qualified tuition program (QTP). A trustee of a designate an account number for all Forms 1099-Q that you
Coverdell education savings account (ESA) must file Form file. See part L in the current General Instructions for Certain
1099-Q to report distributions made from Coverdell ESAs. Information Returns.
Do not file Form 1099-Q for a change in the name of the
designated beneficiary on a QTP account if the new Box 1. Gross Distribution
beneficiary is a member of the former beneficiary's family. Gross distributions from a QTP, whether in cash or in-kind,
For a Coverdell ESA, the new beneficiary must be a member include amounts for tuition credits or certificates, payment
of the designated beneficiary's family and be under age 30 vouchers, tuition waivers, or other similar items. Gross
(except beneficiaries with special needs).

Nov 07, 2019 Cat. No. 32260M

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distributions also include a refund to the account owner or a QTP to an ABLE account. For a Coverdell ESA, check this
the designated beneficiary, or to the beneficiary upon death box if the distribution was made directly to another Coverdell
or disability. For more information on reporting distributions, ESA or to a QTP.
see Proposed Regulations section 1.529-4.
In a trustee-to-trustee transfer between qualified
Gross distributions from a Coverdell ESA include amounts education programs, the distributing program must provide
for a refund, a payment upon death or disability, or a you with a statement reporting the earnings portion of the
withdrawal of excess contributions plus earnings. distribution within 30 days of the distribution or by January
If earnings and basis are not reported for Coverdell 10, whichever is earlier. You must properly account for this in
figuring the earnings or (loss) reported in box 2 and the basis
! ESA distributions, leave boxes 2 and 3 blank. Do not reported in box 3.
CAUTION enter zero. Instead, you must report the fair market
value (FMV) as of the end of the year in the blank box below If you do not have records showing that a gross
boxes 5 and 6. Label the amount “FMV.” See Notice TIP distribution from a Coverdell ESA made in the current
2003-53, 2003-33 I.R.B. 362, available at IRS.gov/irb/ year was a trustee-to-trustee transfer, leave box 4
2003-33_IRB#NOT-2003-53, for more reporting blank.
requirements.
Box 5. Checkbox
Box 2. Earnings Check the “Private” box if the distribution is from a QTP
To determine the earnings or (loss) on the gross distribution established by one or more private eligible educational
reported in box 1, use the earnings ratio described in institutions, or check the “State” box if the distribution is from
Proposed Regulations section 1.529-3, Notice 2001-81, and a QTP established by a state. Otherwise, check the
Notice 2016-13. You can find Notice 2001-81 on page 617 of “Coverdell ESA” box.
Internal Revenue Bulletin 2001-52 at IRS.gov/pub/irs-irbs/
irb01-52.pdf and Notice 2016-13 at IRS.gov/irb/ Box 6. Designated Beneficiary Checkbox
2016-07_IRB#NOT-2016-13. Check the box if the recipient is not the designated
Enter the earnings in box 2. If there is a loss and this is not beneficiary under a QTP or a Coverdell ESA (see section
the final year for distributions from the account or there are 529(e)(1)).
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. Distribution Codes
Earnings are not subject to backup withholding. For the current year, you may, but are not required to, include
If you are reporting a distribution from a Coverdell ESA one of the following distribution codes in the blank box below
that includes a returned contribution plus earnings, you boxes 5 and 6. You may abbreviate as needed. For example,
should file two Forms 1099-Q, one to report the returned for distribution code 1, you may enter “distr. code 1.”
contribution plus earnings, the other to report the distribution
of the other part of the account. Distribution Code Use this code for...
You should file a separate Form 1099-Q for any
trustee-to-trustee transfer. 1–Distributions Distributions (including transfers) to
the recipient and any direct
For Coverdell ESAs, if you are not reporting earnings, see payments to a qualified educational
the Caution above. facility. However, use code 2 or 3
for withdrawals of excess
For Coverdell ESAs, if you are reporting earnings on contributions.
TIP a distribution of excess contributions, use the method
under Regulations section 1.408-11 for figuring the 2–Excess contributions plus Withdrawals of excess Coverdell
net income attributable to IRA contributions that are earnings taxable in current year ESA contributions and earnings
unless code 3 applies.
distributed as a returned contribution.
3–Excess contributions plus Withdrawals of excess
If the amount in box 2 includes earnings on excess earnings taxable in prior year contributions from a Coverdell ESA.
contributions, enter distribution code 2 or 3 (as applicable) in Advise payees, at the time the
the box below boxes 5 and 6 (below the shading). See distribution is made, that the
Notice 2003-53 for more information. earnings are taxable in the year in
which the excess contributions
were made.
Box 3. Basis
For QTPs and Coverdell ESAs, if you can determine basis, 4–Disability Distributions you made after the
recipient was disabled (see section
enter in box 3 the basis included in the gross distribution 72(m)(7)).
reported in box 1. The amount in box 3 must equal box 1
minus box 2. 5–Death Payments to a decedent's
beneficiary, including an estate.
For determining basis of a Coverdell ESA, you may
TIP rely on Notice 2001-81. 6–Prohibited transaction Prohibited transactions. See
sections 408(e)(2) and 408(e)(4) for
similar rules that apply to a
Coverdell ESA.
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

-2- Instructions for Form 1099-Q (Rev. 11-2019)

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