Hi all,

First time user here looking for some assistance.

I am currently a full-time student, claiming dependency under my parents who pay for my education-related expenses. I was recently sent a 1099-Q Qualified Education Program form by my parents for me to file. I am listed as the recipient, but I will be claimed as their dependent on their 2011 return. My question is: who files the form?

On a similar note, my parents also sent me a 1099-B form used for education. I'm the recipient again. Who files?

I am finding mixed signals from other forums. I would say that 60% are saying even though my name is on the form, I am still my parent's dependent so my parents need to file it. Other places are saying whoever's SSN is on the form is who files it. Lastly, I have also read whoever was mailed the form files it. If possible, could you refer me to where your answer is listed on the 1099-Q IRS form? I looked at them, but I couldn't find my answer there.

Thanks for your time and help!

- Satchmo05

“I was recently sent a 1099-Q Qualified Education Program form by my parents for me to file. I am listed as the recipient, but I will be claimed as their dependent on their 2011 return. My question is: who files the form? “--->IRS Form 1099-Q is sent to those taxpayers who received payments from qualified education investments, such as 529 or 530 college savings programs. An officer or an EE, or the designee of an officer or EE, having control of a program established by a state or eligible educational institution; and made a distribution from a qualified tuition program need to file Form 1099Q.A trustee of a Coverdell education savings account must file Form 1099-Q to report distributions made from Coverdell ESAs. As long as they are required to file Form 1099-Q, they must provide a statement to the recipient. By furnishing a copy of Form 1099-Q or an acceptable substitute statement to each recipient.
Please visit the IRS website here: Instructions for Â*Form 1099-Q (2012)
“On a similar note, my parents also sent me a 1099-B form used for education. I'm the recipient again. Who files?�---> IRS Form 1099-B is an information return that must be filed with the IRS for transactions involving brokers and barter exchanges. The broker or barter exchange is required to file the 1099-B form with the IRS, and must provide a copy of the 1099-B form to the taxpayer involved in the transaction. A broker or barter exchange must file Form 1099-B for whom the broker has sold including short sales stocks, bonds, commodities, regulated futures contracts, foreign currency contracts pursuant to a forward contract or regulated futures contract), forward contracts, debt instruments, etc., for cash, Who received cash, stock, or other property from a corporation that the broker knows or has reason to know has had its stock acquired in an acquisition of control or had a substantial change in capital structure reportable on Form 8806, or who exchanged property or services through a barter exchange.
Please visit the IRS Website here for more info;Instructions for Form 1099-B (2012)

@Wnhough,

This is exactly what I read on the IRS site, but it is a bit difficult for me to translate. If I am understanding you correctly:

in response to the 1099-Q form: the individual who started and has control of the fund (my parents in this case) has to file the 1099-Q. Who is the trustee? Also, does the recipient (me in this case since my name and SSN are on the form) have to file the 1099-Q as well?

in response to the 1099-B form: This one is a bit fuzzy. If my parents received the payment from the fund from the broker to pay for my education, who files?

Thanks again for your help - most appreciated!

“in response to the 1099-Q form: the individual who started and has control of the fund (my parents in this case) has to file the 1099-Q. Who is the trustee? Also, does the recipient (me in this case since my name and SSN are on the form) have to file the 1099-Q as well?�----> You/ your parents don't report it at all if it was used for your qualified education expenses. Just make sure you file it and copies of college expenses with your tax papers(if you need to file your return as a dependent). it won't trigger an audit. Not all 1099s have to be reported on tax returns. Here is the link to IRS 970 which has all the education tax credit information.http://www.irs.gov/pub/irs-pdf/p970.pdf
The section about 529 accounts starts on page 54. Take some time to read through the whole thing (could be an insomnia cure) to make sure there are not any other education tax benefits your program is not telling you about. 529 plan tax reporting requirements come at the time that you receive distributions from the plan to pay qualified educational expenses, which generally include tuition and supplies, technology, special needs expenses and room and board. When you receive distributions from a 529 plan, the amount that your parents put into the plan is not taxable; it's a return of investment. The earnings from the 529 plan are taxable only if the total distributions are greater than your adjusted qualified education expenses. This money is income for you, as a recipient, and reportable on your tax return. The return of money from a 529 plan is in two forms: return of your parents’ investment and earnings on their investment. The 529 plan will send you a Form 1099-Q each year you receive a distribution from the plan. Box 1 shows the total amount received (gross distribution). Box 2 shows how much of the total was earnings, and box 3 shows how much of the total was return of investment (called basis).You need to determine if total distributions for the year are more or less than the amount of adjusted qualified education expenses. If total distributions are equal to or less than adjusted qualified education expenses, you owe no tax ass aid above. If total distributions are greater than adjusted qualified education expenses, the you need to calculate the taxable part of a distribution: First, multiply the earnings shown in box 2 of Form 1099-Q by a fraction. The numerator is the adjusted qualified education expenses paid during the year and the denominator is the amount of total distributions for the year. And you need to subtract the amount calculated in step one from the total distributed earnings. The result is the amount you must include on your return, OK???
“in response to the 1099-B form: This one is a bit fuzzy. If my parents received the payment from the fund from the broker to pay for my education, who files?�----> You will have to file a 1040 with a Schedule D(hopefully, your parents will need to do a tax return for you), and list the sale under the your SSN#. The amount on the 1099B goes in the "proceeds" column. The fund should have detail of the basis.Capital gains/losses from a sale can not be reported on the parents return using a 8814; Your parentrs should not claim this income on the 8814 on their tax return.

Thanks again for your response,

So for the 1099-Q: I believe (due to my scholarships) they put in too much money to the non-taxable education fund. Since this was the case, they took out the rest, which now makes it taxable. If I can summarize what you're saying here, even though I personally didn't put in the money to the account, just because my name is on the recipient line, I have to file it? Note that I will not be receiving the extra money that was added to the fund, my parents will keep that. I believe they mentioned that they added me as the recipient because I would be a lower tax tier.

If I could use an analogy, it's almost like I'm paying income taxes on my parent's paychecks. I am not receiving their money, but me (a supplemental 3rd party) is paying for the taxes on it. Sounds a bit fishy to me, haha.

And for the 1099-B: Same story here, they added money to the fund with my name on it. Even though I'm the recipient (who isn't receiving the money in any form) is filing the form.

Thanks again for your help - you're a life saver! I'm new at this tax game, so I am unsure of the proper procedure.

- Satchmo05