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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Box 1. Gross Distribution Box 4. Trustee-to-Trustee Transfer Checkbox
Gross distributions from a QTP, whether in cash or in-kind, Check this box if the distribution was made directly
include amounts for tuition credits or certificates, payment (trustee-to-trustee transfer) from one QTP to another, or from
vouchers, tuition waivers, or other similar items. Gross a QTP to an ABLE account. For a Coverdell ESA, check this
distributions also include a refund to the account owner or box if the distribution was made directly to another Coverdell
the designated beneficiary, or to the beneficiary upon death ESA or to a QTP.
or disability. For more information on reporting distributions,
see Proposed Regulations section 1.529-4. In a trustee-to-trustee transfer between qualified
education programs, the distributing program must provide
Gross distributions from a Coverdell ESA include amounts you with a statement reporting the earnings portion of the
for a refund, a payment upon death or disability, or a distribution within 30 days of the distribution or by January
withdrawal of excess contributions plus earnings. 10, whichever is earlier. You must properly account for this in
figuring the earnings or (loss) reported in box 2 and the basis
If earnings and basis are not reported for Coverdell reported in box 3.
! ESA distributions, leave boxes 2 and 3 blank. Do not If you do not have records showing that a gross
CAUTION enter zero. Instead, you must report the fair market
value (FMV) as of the end of the year in the blank box below TIP distribution from a Coverdell ESA made in 2019 was
boxes 5 and 6. Label the amount “FMV.” See Notice a trustee-to-trustee transfer, leave box 4 blank.
2003-53, 2003-33 I.R.B. 362, available at IRS.gov/irb/
2003-33_IRB/ar15.html, for more reporting requirements. Box 5. Checkbox
Check the “Private” box if the distribution is from a QTP
Box 2. Earnings established by one or more private eligible educational
To determine the earnings or (loss) on the gross distribution institutions, or check the “State” box if the distribution is from
reported in box 1, use the earnings ratio described in a QTP established by a state. Otherwise, check the
Proposed Regulations section 1.529-3, Notice 2001-81, and “Coverdell ESA” box.
Notice 2016-13. You can find Notice 2001-81 on page 617 of
Internal Revenue Bulletin 2001-52 at IRS.gov/pub/irs-irbs/ Box 6. Designated Beneficiary Checkbox
irb01-52.pdf and Notice 2016-13 at IRS.gov/irb/ Check the box if the recipient is not the designated
2016-07_IRB/ar06.html. beneficiary under a QTP or a Coverdell ESA (see section
529(e)(1)).
Enter the earnings in box 2. If there is a loss and this is not
the final year for distributions from the account or there are Distribution Codes
no earnings, enter zero in box 2. Enter a loss in box 2 only if For 2019, you may, but are not required to, include one of the
this is the final year for distributions from the account. following distribution codes in the blank box below boxes 5
Earnings are not subject to backup withholding. and 6. You may abbreviate as needed. For example, for
distribution code 1, you may enter “distr. code 1.”
If you are reporting a distribution from a Coverdell ESA
that includes a returned contribution plus earnings, you
should file two Forms 1099-Q, one to report the returned Distribution Code Use this code for...
contribution plus earnings, the other to report the distribution
of the other part of the account. 1–Distributions Distributions (including transfers) to
the recipient and any direct
You should file a separate Form 1099-Q for any payments to a qualified educational
trustee-to-trustee transfer. facility. However, use code 2 or 3
for withdrawals of excess
For Coverdell ESAs, if you are not reporting earnings, see contributions.
the Caution above. 2–Excess contributions plus Withdrawals of excess Coverdell
earnings taxable in 2019 ESA contributions and earnings
For Coverdell ESAs, if you are reporting earnings on unless code 3 applies.
TIP a distribution of excess contributions, use the method
under Regulations section 1.408-11 for figuring the 3–Excess contributions plus Withdrawals of excess
earnings taxable in 2018 contributions from a Coverdell ESA.
net income attributable to IRA contributions that are Advise payees, at the time the
distributed as a returned contribution. distribution is made, that the
earnings are taxable in the year in
If the amount in box 2 includes earnings on excess which the excess contributions
contributions, enter distribution code 2 or 3 (as applicable) in were made.
the box below boxes 5 and 6 (below the shading). See 4–Disability Distributions you made after the
Notice 2003-53 for more information. recipient was disabled (see section
72(m)(7)).
Box 3. Basis 5–Death Payments to a decedent's
For QTPs and Coverdell ESAs, if you can determine basis, beneficiary, including an estate.
enter in box 3 the basis included in the gross distribution 6–Prohibited transaction Prohibited transactions. See
reported in box 1. The amount in box 3 must equal box 1 sections 408(e)(2) and 408(e)(4) for
minus box 2. similar rules that apply to a
For determining basis of a Coverdell ESA, you may Coverdell ESA.
TIP rely on Notice 2001-81.
-2- Instructions for Form 1099-Q (2019)
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