Instructions for Form 1099-Q (Rev. April 2025)

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Instructions for Form 1099-Q
(Rev. April 2025)

Payments From Qualified Education Programs (Under Sections 529 and 530)
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments

For the latest information about developments related to
Form 1099-Q and its instructions, such as legislation enacted
after they were published, go to IRS.gov/Form1099Q.
You can get the General Instructions for Certain
Information Returns at IRS.gov/1099GeneralInstructions.

What’s New
New checkbox 4b. Box 4 now has two checkboxes, 4a to
report trustee-to-trustee transfers and 4b to report a QTP to a
Roth IRA transfer.
Trustee-to-trustee transfers. Taxpayers may now roll over
limited funds from a qualified tuition program (QTP) to an
Achieving a Better Life Experience (ABLE) account within 60
days of the distribution. Report these by checking box 4a and
using distribution code 1 in box 7.

Reminders

In addition to these specific instructions, you should also use
the current General Instructions for Certain Information
Returns. Those general instructions include information
about the following topics.
• Who must file.
• When and where to file.
• Electronic reporting.
• Corrected and void returns.
• Statements to recipients.
• Taxpayer identification numbers (TINs).
• Backup withholding.
• Penalties.
• Other general topics.

Continuous use revision. Use these instructions for tax
year 2025 and subsequent years until a superseding revision
is issued.
E-filing returns. The Taxpayer First Act of 2019 authorized
the Department of the Treasury and the IRS to issue
regulations that reduce the 250-return e-file threshold. T.D.
9972, published February 23, 2023, lowered the e-file
threshold to 10 (calculated by aggregating all information
returns), effective for information returns required to be filed
on or after January 1, 2024. Go to IRS.gov/InfoReturn for
e-file options.
Information Reporting Intake System (IRIS). The IRS has
developed IRIS, an online portal for e-filing information
returns. Go to IRS.gov/IRIS for more information.
Online fillable form. Due to the very low volume of paper
Forms 1099-Q received and processed by the IRS each year,
this form has been converted to an online fillable format. You
may fill out the form, found online at IRS.gov/Form1099Q,
and send Copy B to the recipient. If, due to a low volume of
recipients, you are filing the form(s) on paper, you can send in

Jan 8, 2025

the black-and-white Copy(ies) A with a Form 1096 you also
printed from the IRS website.

Specific Instructions

File Form 1099-Q, Payments From Qualified Education
Programs (Under Sections 529 and 530), if you (a) are an
officer or an employee, or the designee of an officer or
employee, having control of a program established by a state
or eligible educational institution; and (b) made a distribution
from a QTP. A trustee of a Coverdell education savings
account (ESA) must file Form 1099-Q to report distributions
made from Coverdell ESAs.
Do not file Form 1099-Q for a change in the name of the
designated beneficiary on a QTP account if the new
beneficiary is a member of the former beneficiary's family. For
a Coverdell ESA, the new beneficiary must be a member of
the designated beneficiary's family and be under age 30
(except beneficiaries with special needs).
Family members of the designated beneficiary include the
beneficiary's spouse. Also included are the beneficiary's
children, stepchildren, foster children, and their descendants;
siblings and their children; parents, their siblings, and
ancestors; stepparents; in-laws; the spouse of any of the
foregoing; and any first cousin of the designated beneficiary.

Statements to Recipients

If you are required to file Form 1099-Q, you must also furnish
a statement to the recipient. Furnish a copy of Form 1099-Q
or an acceptable substitute statement to each recipient. See
part M in the current General Instructions for Certain
Information Returns.

Truncating recipient’s TIN on payee statements.
Pursuant to Regulations section 301.6109-4, all filers of this
form may truncate a recipient’s TIN (social security number
(SSN), individual taxpayer identification number (ITIN),
adoption taxpayer identification number (ATIN), or employer
identification number (EIN)) on payee statements. Truncation
is not allowed on any documents the filer files with the IRS. A
payer’s/trustee's TIN may not be truncated on any form. See
part J in the current General Instructions for Certain
Information Returns.

Payer's Name and TIN
QTP. For the payer's/trustee's name and TIN, enter the name
and EIN of the QTP. For a program established and
maintained by a state that uses the EIN of the state, enter the
name of the state on the first name line and the name of the
program on the second name line.
Coverdell ESA. Enter the name and EIN of the trustee.

Recipient's Name and TIN
QTP. List the designated beneficiary as the recipient only if
the distribution is made (a) directly to the designated
beneficiary, (b) to an eligible educational institution for the
benefit of the designated beneficiary, or (c) directly

Instructions for Form 1099Q (Rev. 4-2025) Catalog Number 32260M
Department of the Treasury Internal Revenue Service www.irs.gov

(trustee-to-trustee transfer) to a Roth IRA maintained for the
benefit of the designated beneficiary. Otherwise, list the
account owner as the recipient of the distribution. Enter the
TIN for the applicable recipient.
Coverdell ESA. Enter the name and TIN of the designated
beneficiary as the recipient.

Account Number

The account number is required if you have multiple accounts
for a recipient for whom you are filing more than one Form
1099-Q. Additionally, the IRS encourages you to designate
an account number for all Forms 1099-Q that you file. See
part L in the current General Instructions for Certain
Information Returns.

Box 1. Gross Distribution

Gross distributions from a QTP, whether in cash or in-kind,
include amounts for tuition credits or certificates, payment
vouchers, tuition waivers, or other similar items. Gross
distributions also include a refund to the account owner or the
designated beneficiary, or to the beneficiary upon death or
disability. For more information on reporting distributions, see
Proposed Regulations section 1.529-4.
Gross distributions from a Coverdell ESA include amounts
for a refund, a payment upon death or disability, or a
withdrawal of excess contributions plus earnings.
If earnings and basis are not reported for Coverdell
ESA distributions, leave boxes 2 and 3 blank. Do not
CAUTION enter zero. Instead, you must report the fair market
value (FMV) as of the end of the year in box 7. Label the
amount “FMV.” See Notice 2003-53, 2003-33 I.R.B. 362,
available at IRS.gov/irb/2003-33_IRB#NOT-2003-53, for
more reporting requirements.

!

Box 2. Earnings

To determine the earnings or (loss) on the gross distribution
reported in box 1, use the earnings ratio described in
Proposed Regulations section 1.529-3, Notice 2001-81, and
Notice 2016-13. You can find Notice 2001-81 on page 617 of
Internal Revenue Bulletin 2001-52 at IRS.gov/pub/irs-irbs/
irb01-52.pdf and you can find Notice 2016-13 at IRS.gov/irb/
2016-07_IRB#NOT-2016-13.
Enter the earnings in box 2. If there is a (loss) and this is
not the final year for distributions from the account or there
are no earnings, enter zero in box 2. Enter a (loss) in box 2
only if this is the final year for distributions from the account.
Earnings are not subject to backup withholding.
If you are reporting a distribution from a Coverdell ESA
that includes a returned contribution plus earnings, you
should file two Forms 1099-Q, one to report the returned
contribution plus earnings, the other to report the distribution
of the other part of the account.

If the amount in box 2 includes earnings on excess
contributions, enter distribution code 2 or 3 (as applicable) in
box 7. See Notice 2003-53 for more information.

Box 3. Basis

For QTPs and Coverdell ESAs, if you can determine basis,
enter in box 3 the basis included in the gross distribution
reported in box 1. The amount in box 3 must equal box 1
minus box 2.
For determining basis of a Coverdell ESA, you may

TIP rely on Notice 2001-81.

Boxes 4a-4b. Type of Transfer

Check box 4a if the distribution was made directly
(trustee-to-trustee transfer) from one QTP to another, or from
a QTP to an ABLE account. For a Coverdell ESA, check
box 4a if the distribution was made directly to another
Coverdell ESA or to a QTP.
In a trustee-to-trustee transfer between qualified education
programs, the distributing program must provide you with a
statement reporting the earnings portion of the distribution
within 30 days of the distribution or by January 10, whichever
is earlier. You must properly account for this in figuring the
earnings or (loss) reported in box 2 and the basis reported in
box 3.
If you do not have records showing that a gross

TIP distribution from a Coverdell ESA made in the current
blank.

year was a trustee-to-trustee transfer, leave box 4a

Check box 4b if the distribution was made directly
(trustee-to-trustee transfer) from a QTP to a Roth IRA
maintained for the benefit of the QTP beneficiary.

Box 5a-5c. Distribution Is From

Check box 5a (private QTP) if the distribution is from a QTP
established by one or more private eligible educational
institutions, or check box 5b (state QTP) if the distribution is
from a QTP established by a state. Otherwise, check box 5c
(Coverdell ESA).

Box 6. Designated Beneficiary Checkbox

Check the box if the recipient is not the designated
beneficiary under a QTP or a Coverdell ESA (see section
529(e)(1)).

Distribution Codes

For the current year, you may, but are not required to, include
one of the following distribution codes in box 7. You may
abbreviate as needed. For example, for distribution code 1,
you may enter “distr. code 1.”

You should file a separate Form 1099-Q for any
trustee-to-trustee transfer.
For Coverdell ESAs, if you are not reporting earnings, see
the Caution above.
For Coverdell ESAs, if you are reporting earnings on

TIP a distribution of excess contributions, use the method

under Regulations section 1.408-11 for figuring the
net income attributable to IRA contributions that are
distributed as a returned contribution.
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Instructions for Form 1099-Q (Rev. 4-2025)

Distribution Code

Use this code for...

1–Distributions

Distributions (including transfers) to
the recipient and any direct
payments to a qualified educational
facility. However, use code 2 or 3 for
withdrawals of excess contributions.

2–Excess contributions plus
earnings taxable in current year

Withdrawals of excess Coverdell
ESA contributions and earnings
unless code 3 applies.

3–Excess contributions plus
earnings taxable in prior year

Withdrawals of excess contributions
from a Coverdell ESA. Advise
payees, at the time the distribution
is made, that the earnings are
taxable in the year in which the
excess contributions were made.

4–Disability

Distributions you made after the
recipient was disabled (see section
72(m)(7)).

5–Death

Payments to a decedent's
beneficiary, including an estate.

6–Prohibited transaction

Prohibited transactions. See
sections 408(e)(2) and 408(e)(4) for
similar rules that apply to a
Coverdell ESA.

Instructions for Form 1099-Q (Rev. 4-2025)

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