Form 1099-Q: 529 Plan Distributions, Box by Box
Form 1099-Q reports distributions from qualified tuition programs (QTPs, the 529 plans) and from Coverdell education savings accounts (ESAs): box 1 is the gross distribution, split into earnings (box 2) and basis (box 3). The recipient copy of Form 1099-Q (Rev. April 2025) says these distributions may be taxable and that “You must determine the taxability of any distribution.”
Maintained by Archie Chang · Sources checked against agency text on November 2, 2026 · Methodology & sources
Who files Form 1099-Q and who receives it
The IRS About page and the instructions for Form 1099-Q describe the filer. A QTP is a qualified tuition program under section 529.
“File Form 1099-Q (Info Copy Only) if you:
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.
Made a distribution from a qualified tuition program (QTP).”
“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.”
“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.”
“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
[…]
(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.”
“If you are required to file Form 1099-Q, you must also furnish a statement to the recipient.”
Form revision
Form 1099-Q (Rev. April 2025) and its instructions (Rev. April 2025) are the documents quoted here.
“Continuous use revision. Use these instructions for tax year 2025 and subsequent years until a superseding revision is issued.”
“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.”
“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.”
Form 1099-Q box by box
The table puts the form’s label, the instructions for the payer and the instructions printed on the recipient copy side by side.
| Box | Label on the form | Instructions for Form 1099-Q (for the payer) | Instructions for Recipient (on the form) |
|---|---|---|---|
| Box 1 | 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. | Shows the gross distribution (including in-kind distributions) paid to you this year from a QTP or a CESA. This amount is the total of the amounts shown in boxes 2 and 3. |
| Box 2 | 2 Earnings | 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. | Shows the earnings part of the gross distribution shown in box 1. |
| Box 3 | 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. | Shows your basis in the gross distribution reported in box 1. |
| Boxes 4a–4b | 4 Type of transfer: a Trustee-to-trustee b QTP to Roth IRA | 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. | Show whether a transfer was made from a trustee-to-trustee (from one QTP to another QTP, one CESA to another CESA, a CESA to a QTP, or a QTP to an ABLE account), or from a QTP to a Roth IRA. |
| Boxes 5a–5c | 5 Distribution is from: a Private QTP b State QTP c Coverdell ESA | 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). | Show whether the gross distribution was from a private QTP, state QTP, or CESA. |
| Box 6 | 6 Check if the recipient is not the designated beneficiary | Check the box if the recipient is not the designated beneficiary under a QTP or a Coverdell ESA (see section 529(e)(1)). | The designated beneficiary is the individual named in the document creating the trust or custodial account to receive the benefit of the funds in the account. |
| Box 7 | 7 If the fair market value (FMV) is shown below, see Pub. 970, Tax Benefits for Education, for how to figure earnings. | For the current year, you may, but are not required to, include one of the following distribution codes in box 7. | For the calendar year, the payer/trustee may, but is not required to, report in box 7 one of the following codes to identify the distribution you received: |
“If earnings and basis are not reported for Coverdell ESA distributions, leave boxes 2 and 3 blank. Do not enter zero. Instead, you must report the fair market value (FMV) as of the end of the year in box 7.”
“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 7 distribution codes
The instructions say a code in box 7 is optional for the payer. The six codes are shown as printed.
| Code | Name on the list | 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. |
When distributions are taxable: what the IRS documents say
The recipient copy of Form 1099-Q and Publication 970 (2025) are quoted without applying them to any particular case. Related pages: 529 contribution limit, Form 1098-T and the SAI calculator.
“Distributions from Coverdell education savings accounts (CESAs) under section 530 and qualified tuition programs (QTPs) under section 529, including rollovers, may be taxable. Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution. See Pub. 970 and the Instructions for Forms 1040 and 1040-SR for more information. Also see Form 5329 and its separate instructions.”
“Box 2. Shows the earnings part of the gross distribution shown in box 1. Generally, amounts distributed that are used to pay for qualified education expenses, transferred between trustees, or rolled over to another qualified education program or to an ABLE account, within 60 days, are not included in income.”
“Under a QTP, the amount in box 2 is included in income if there has been (a) more than one transfer or rollover within any 12-month period with respect to the same beneficiary, or (b) a change in the designated beneficiary and the new designated beneficiary is not a family member. Under a CESA, the amount in box 2 is included in income if there has been a change in the designated beneficiary and the new designated beneficiary is not a family member or is over age 30 (except for beneficiaries with special needs). Also, an additional 10% tax may apply to part or all of any amount included in income from the CESA or QTP. See Form 5329 and your tax return instructions for more information.”
Publication 970 (2025), chapter 7, on QTP distributions:
“The part of a distribution representing the amount paid or contributed to a QTP doesn’t have to be included in income. This is a return of the investment in the plan.”
“The recipient of the distribution generally doesn’t have to include in income any earnings distributed from a QTP if the total distribution is less than or equal to AQEE (defined under Figuring the Taxable Portion of a Distribution, below).”
“The designated beneficiary is considered the recipient only if the distribution is made (a) directly to the designated beneficiary, or (b) to an eligible educational institution for the benefit of the designated beneficiary. Otherwise, the account owner is considered the recipient of the distribution.”
“Adjusted qualified education expenses (AQEE). This amount is the total qualified education expenses reduced by any tax-free educational assistance.”
“Taxable earnings. Use the following steps to figure the taxable part.
1. Multiply the total distributed earnings shown in box 2 of Form 1099-Q by a fraction. The numerator (top part) is the AQEE paid during the year, and the denominator (bottom part) is the total amount distributed during the year.
2. Subtract the amount figured in (1) from the total distributed earnings. The result is the amount the beneficiary must include in income. Report it on Schedule 1 (Form 1040), line 8z.”
Publication 970 (2025), chapter 6, on Coverdell ESA distributions:
“Generally, distributions are tax free if they aren’t more than the beneficiary’s AQEE for the year.”
“For 2025, instead of dividing the gross distribution between your earnings (box 2) and your basis (amount already taxed) (box 3), the payer or trustee may report the fair market value (account balance) of the Coverdell ESA as of December 31, 2025. This will be shown in box 7.”
Due dates
Due dates come from the Publication 1099 (2026) guide to information returns. Publication 970 (2025) words the recipient date for 2025 distributions.
| Form | Publication 1099 (2026) row, as printed | Due to the IRS on paper | Due to the IRS if filed electronically | Due to the recipient |
|---|---|---|---|---|
| Form 1099-Q | All amounts February 28* January 31 | February 28 | March 31 | January 31 |
“Form 1099-Q should be sent to you by February 2, 2026 (January 31 falls on a Saturday).”
“* The due date is March 31 if filed electronically.”
“If any filing due date in these instructions falls on a Saturday, Sunday, or a legal holiday, you will be considered to have timely filed if you file by the next day that is not a Saturday, Sunday, or a legal holiday. Legal holidays for this purpose are legal holidays in the District of Columbia or a statewide legal holiday where the return is required to be filed.”
Frequently asked questions
What is Form 1099-Q?
The IRS instructions say to file Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530), if you are an officer or employee, or the designee of one, having control of a program established by a state or eligible educational institution and made a distribution from a QTP. They add that a trustee of a Coverdell education savings account (ESA) must file Form 1099-Q to report distributions made from Coverdell ESAs.
What do boxes 1, 2 and 3 on Form 1099-Q show?
The recipient copy says box 1 shows the gross distribution paid to the recipient from a QTP or a CESA, “the total of the amounts shown in boxes 2 and 3.” Box 2 shows the earnings part and box 3 shows your basis in the gross distribution. For Coverdell ESA distributions the payer may instead report the fair market value in box 7.
Who is listed as the recipient on Form 1099-Q?
For a QTP, the instructions say to list the designated beneficiary as the recipient only if the distribution is made directly to the designated beneficiary, to an eligible educational institution for the benefit of the designated beneficiary, or directly (trustee-to-trustee transfer) to a Roth IRA maintained for the designated beneficiary; otherwise the account owner is listed. For a Coverdell ESA, the designated beneficiary is the recipient.
Are 529 plan distributions taxable?
The recipient copy says the distributions “may be taxable” and “You must determine the taxability of any distribution.” Publication 970 (2025) says the part of a distribution that is the amount contributed doesn’t have to be included in income, and that the recipient “generally doesn’t have to include in income any earnings distributed from a QTP if the total distribution is less than or equal to AQEE.”
What are the box 7 distribution codes?
The instructions list six codes: 1—Distributions; 2—Excess contributions plus earnings taxable in current year; 3—Excess contributions plus earnings taxable in prior year; 4—Disability; 5—Death; 6—Prohibited transaction. The recipient copy says “the payer/trustee may, but is not required to, report in box 7 one of the following codes.”
What do boxes 4a and 4b mean?
The instructions say to 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, and to check box 4b if it was made directly from a QTP to a Roth IRA maintained for the benefit of the QTP beneficiary. The instructions’ What’s New section lists “New checkbox 4b.”
When is Form 1099-Q due?
Publication 1099 (2026) lists Form 1099-Q with a due date of February 28 to the IRS (March 31 if filed electronically) and January 31 to the recipient. Publication 970 (2025) says, for 2025 distributions, “Form 1099-Q should be sent to you by February 2, 2026 (January 31 falls on a Saturday).”
Related form pages and tools
Sources (checked November 2, 2026): IRS: Publication 1099, General Instructions for Certain Information Returns (2026), PDF · IRS: About Form 1099-Q · IRS: Form 1099-Q (Rev. April 2025), PDF · IRS: Instructions for Form 1099-Q (Rev. April 2025), PDF · IRS: Publication 970, Tax Benefits for Education (2025), PDF