Question
Client received a 1099Q for ...
Good morning:
My client received a 1099Q for a distribution for his Granddaughter's (the beneficiary) from a state 529 plan he contributed to. The Gross distribution was $17,000,earnings $6,132 and basis $10,867.
I input this information on the 1099Q worksheet. I checked the box beneficiary was some else and checked my client (taxpayer) was the recipient. Also on this worksheet I double clicked the line which said "If the designated beneficiary is someone else, double click to link this 1099Q to the applicable Qualified education exp worksheet". Do I have to find out next what her expenses were in order for the $6,132 not to be taxable to my client?
Thank you in advance for your help.
