Menu

Search

Knowledge Base


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 options detailed below. 

Option 1:

Complete Part II – Education and ABLE 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:

  • Schedule 1, line 8 starting in Drake19.  
  • Schedule 1, line 21 in Drake18. 
  • Form 1040, line 21 in Drake17 and prior. 

The “additional tax” on the amount flows to:

  • Schedule 2, line 6 starting in Drake19. 
  • Schedule 4, line 59 in Drake18. 
  • Form 1040, line 59 in Drake17 and prior.

Otherwise, Form 5329 is not produced.

If you let the software do the distribution computation, 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.

Option 2:  

Manually compute the taxable distribution, if any, and enter it directly on both: 

  • screen 5329, line 5, and
  • screen 3, line 8 (line 21 in Drake18 and prior).

The 5329 entry flows to Form 5329, line 5 and the software figures any “additional tax” which will then flow to:

  • Schedule 2, line 6 starting in Drake19. 
  • Schedule 4, line 59 in Drake18. 
  • Form 1040, line 59 in Drake17 and prior.

The entry on screen 3 flows to:

  • Schedule 1, line 8 starting in Drake19.  
  • Schedule 1, line 21 in Drake18. 
  • Form 1040, line 21 in Drake17 and prior. 

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


Related Links


Also In This Category


Details
Article has been viewed 95K times.
Last Modified: Last Month
Options