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Tax Resource Center

1099-Q CESA Distributions

If you received distributions from a Coverdell Education Savings Account, you’ll receive Form 1099-Q. Find more information about Coverdell Education Savings Accounts.

Who Gets It

Shareholders who took partial or total distributions.

Additionally, expect to receive a 1099-Q if you had:

  • distributions taken from a Coverdell Education Savings Account (CESA)
  • distributions taken to remove an excess CESA contribution
  • transfers from a CESA to another CESA or 529 plan
  • distributions to a beneficiary due to the student's death

When It's Mailed

Thrivent Mutual Funds targets mail dates by January 31st.

What's In It

Distribution amount.

How To Use It

Calculate taxable income on IRS Form 1040 and state/local tax returns.


1099-Q Tax Form Information

Below are descriptions of the boxes on Form 1099-Q. Refer to IRS Publication 970 for more information. At Thrivent Mutual Funds, we recommend you consult your tax advisor to make sure you’re getting the most out of your investments. Thrivent Mutual Funds and their representatives cannot provide legal or tax advice.

 

Box 1—Gross distributions

Shows the gross distribution from a CESA. Types of distributions include:

  1. Distributions taken from a CESA
  2. Distributions taken to remove an excess CESA contribution
  3. Transfers from a CESA to another CESA or 529 plan
  4. Distributions to a beneficiary due to the student's death

Box 2—Earnings

Reports earnings attributable to an excess contribution return. You are responsible for determining the portion of other types of distributions that is attributable to earnings on CESA contributions.

Box 3—Basis

Will be blank for distributions from a CESA. You are responsible for determining the taxable amount, if any, on a distribution from your CESA.

Box 4—Trustee-to-trustee transfer

Will be checked if you transferred the amount in Box 1 to another CESA or 529 plan in a trustee-to-trustee transfer. Trustee-to-trustee transfers are not taxable.

Box 5—Program type

Shows the type of education program that the gross distribution was made from (CESA, public 529 or private 529)

Box 6—Check if the recipient is not the beneficiary

Will be checked if the recipient named on the form is not the designated beneficiary under the CESA or 529 plan.

CESA Fair Market Value as of December 31

This value is included to assist you in determining the taxable portion of the distribution. See IRS Publication 970 — Tax Benefits for Education for how to figure earnings.

 

 

Based on 2017 IRS Form instructions. Subject to change.