Jump to content
ATX Community

1099-Q


bstaxes

Recommended Posts

Client brings in 1099-Q with box 1 (gross distribution) 6000, box 2 (earnings) -4000, box 3 (basis) 10000. He has 5 of these. I need some help. I never saw this form before and am not sure what to do with it. ATX does not have this form either. Did some research but came up empty handed. How do I handle it? It was not used for education, he took the money to pay last years taxes.

Thanks for any help or suggestions.

Link to comment
Share on other sites

Client brings in 1099-Q with box 1 (gross distribution) 6000, box 2 (earnings) -4000, box 3 (basis) 10000. He has 5 of these. I need some help. I never saw this form before and am not sure what to do with it. ATX does not have this form either. Did some research but came up empty handed. How do I handle it? It was not used for education, he took the money to pay last years taxes.

Thanks for any help or suggestions.

bstaxe:

Your 1099 Q is for a distribution from a Qualified Tuition Program or and Education Savings account. In your case it looks like the distribution was used for other purposes rather than education. You take the amount of your distribution * the basis/over the value at the years end That = your basis ditribution that is not taxable. The remainder is your taxable amount. and if you have a loss as it looks like y ou do it goes to Sch A subject to the 2%excess of AGI. Information from the TAXBOOK page 12-5 or it can be found in Pub 970.

Dale

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...