Follow these steps to enter a 1099-Q Section 529 withdrawal:
- Go to the Input Return tab.
- From the left of the screen, select Income and choose Education Distributions (1099-Q).
- Enter the Name of payer.
- Locate the Education Distributions (Form 1099-Q) section.
- Scroll down to the Qualified Expenses subsection and complete any applicable fields:
- Higher education (net of nontaxable benefits)
- Elementary and secondary education (net of nontaxable benefits)
- Scroll down to the Form 1099-Q subsection and complete any applicable fields with amounts from the 1099-Q.
- If not used towards educational expenses, leave the (4) Rollover: 1=nontaxable, 2=taxable field blank. The program will carry the distribution to Form 1040 as other income.
- Enter a 1 or 2 in (5) 1=private 529 program, 2=state 529 program, 3=Coverdell ESA.