Do I include a 1099-Q issued to a dependent child on mom's 1040?

[Liz]

Mom is my client and her 20 year old Dependent Daughter received a 1099-Q with DD's social security number.  Do I include it on M's 1040?  In Lacerte on screen 14 it only asks if it's for taxpayer or spouse, nothing for dependents so I am worried that IRS is not going to see the match up and end up sending DD a letter?  How would you enter it?  I have looked high and low and cannot find a definitive answer on who should report this.

Thank you!

[rbynaker · Accepted solution]

No, but maybe?

If the 1099-Q is taxable then it would probably go on the daughter's return (unless the form was prepared in error).  If it's not taxable, I don't know Lacerte, but in ProSeries it would be part of the whole education credit casserole of which expenses get used for which tax benefit.

Rick

[sjrcpa]

"I am worried that IRS is not going to see the match up and end up sending DD a letter "

That happens anyway since there is no form to show here are the distributions and here is what I used for qualified expenses.