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11714: 1099-Q - Payments from Qualified Education Programs

1040 Individual Generally

Where can I enter data for a 1099-Q, Payments from Qualified Education Programs?

This might be entered on screen 5329, Additional Taxes on Qualified Plans, and possibly also on screen 3. There are two choices:

  1. Complete Part II – Education Accounts on screen 5329. The software will compute the amount of distribution that is taxable. If there is a taxable distribution, the taxable amount flows to Form 5329 line 5 and to 1040 line 21, and the “additional tax” on the amount flows to 1040 line 59. Otherwise, Form 5329 is not produced. If you let the software do this computation for a distribution, do not enter the taxable amount of the distribution directly on line 5 of screen 5329, as it will be added to the taxable amount already computed.
  2. Compute the taxable distribution, if any, yourself, and enter it directly on line 5 of screen 5329 and also on line 21 of screen 3. For 5329 line 5 direct entries, the software figures any “additional tax” for 1040 line 59, but it does not send the taxable distribution to 1040 line 21. You must enter it there manually.

For more information about the computation of the taxable amount, please see Pub. 970, Tax Benefits for Education, and the Instructions for Form 1099-Q, Payments from Qualified Education Programs.

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