Form 1099-Q

Form 1099-Q


Tax Slayer entry:

Federal Section > Income > Other Income > Payments from Qualified Education Programs (Form 1099-Q)

  • Data on the 1099-Q is not highly reliable as an indicator of what expenses were paid and by whom.
  • It may be advantageous to allow some of the scholarship funds to be taxable income, especially if the student is the taxpayer (or spouse if filing jointly).
  • If the amount paid using Educational Savings Accounts (Coverdell ESA, 529 plans, early IRA distributions or savings bonds) is greater than expenses or used for non-education expenses, it is  OUT OF SCOPE . Note that the use of these funds may be used for some things that are not qualified expenses for a particular tax benefit (American Opportunity Credit, Lifetime Learning Credit, or Tuition and Fees deduction).
  • You may find the Education Calculator helpful.