artp Posted February 27 Report Share Posted February 27 Client has 2 children in college with 3 1099-Qs. Daughter's 1099-Q under her SSN has $19,149 in box 1 distribution code 1 Coverdell ESA with zero balance left in the account. Qualified education expenses $28,650 scholarship$16,239. So hers seems straight forward max AOC and nothing to be reported from the 1099-Q. The son has 1099-Q in his SSN also Coverdell ESA box 1 $12,624, box 2 7024 box 3 $5600. Father has 1099-Q under his SSN Box 1 $9892, box 2 $3192, box 3 $6700 also Coverdell ESA. Qualified education expenses $12,056 scholarship 8190. I think that son has $3866 of qualifying expenses for AOC. Based on the above I think we have earnings that have to be reported and 10% penalty apply. Question: How to calculate the amount of income to include? Can this all be reported on the parent's return or separate reporting for Dad and for son? From what I have read in Pub 970 you have to reduce the qualified education expenses for scholarship and the amount used to calculate AOC to get to AQEE, right? Would appreciate input on this. Thanks Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 28 Report Share Posted February 28 Here is a worksheet that I use for this purpose. 529Worksheet529Exp.xlsx 3 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted February 28 Report Share Posted February 28 ESA distributions can be used for room and board, books, computers, etc. Also, the 10% penalty is waived if the student got a scholarship that reduced tuition. 3 Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted March 2 Report Share Posted March 2 MARGARET CAN YOU CHANGE THE FORMAT.FROM XLSX TO XLS. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 2 Report Share Posted March 2 Here you go. 529Worksheet529Exp.xls Quote Link to comment Share on other sites More sharing options...
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