Form 1099-Q: Payments From Qualified Education Programs Overview

Form 1099-Q: Payments From Qualified Education Programs is distributed by the Internal Revenue Service (IRS) to individuals who receive distributions from a Coverdell Education Savings Account (ESA) or 529 plan from his or her respective investment company. The form is used by the individual to fill out both federal and state tax returns.

This form will identify the amount made from the account in gross distributions over the year being reported. These gross distributions are then compared to the educational expenses incurred over the year. If the gross distributions exceed qualified education expenses, then the excess is taxable. If the expenses are greater than the distributions, the individual may use the subsequent excess toward an education tax credit.

Form 1099-Q: Payments From Qualified Education Programs should be filed by officers or employees who have control of a program established by a state or qualified educational institution. It can also be filed by anyone who has made a distribution from a qualified tuition program (QTP).

The form must include the payer/trustee's name, address, telephone number, and identification number, along with the recipient's name, address, account number, and identification number.

Box 1 will have the gross distribution, whether cash or in-kind, including tuition credits or certificates, vouchers, waivers, or any similar items. Box 2 will have the total number of earnings. Box 4 must be checked off if this is a trustee-to-trustee transfer.

Between December 22, 2017, and January 1, 2026, taxpayers are able to roll over limited funds from a qualified tuition program to an ABLE account. They can do so without incurring any penalty or income tax. But the rollover must occur within 60 days of the distribution.

For the 2018 reporting year, use Box 4 of Form 1099-Q for trustee-to-trustee transfers from a QTP to an ABLE account. The filer can use Distribution 1 in boxes 5 and 6 if he or she chooses to use a Distribution Code.

[Important: Because the IRS receives very few Forms 1099-Q, it has been converted to an online fillable format.]

Click this link to download a copy of Form 1099-Q: Payments From Qualified Education Programs.

• Form 1099-Q is filed by individuals who receive distributions from a Coverdell Education Savings Account or 529 plan.
• It identifies the amount made from the account in gross distributions over the year being reported.
• This form should be filed by officers or employees who have control of a program established by a state or qualified educational institution.