Common questions about 1099-Q and 529 plans in Lacerte

To view the QTB Distribution worksheet:

1. Click on the Forms tab
2. Click on Worksheets
3. Locate the QTP Distribution Worksheet
4. Click on the Print Form button in the upper-right of the form (if needed)

Note:  Worksheets are not e-filed with the return.  To include the QTP Distribution Worksheet, print the form to PDF and attach to the return via Screen 4.4, e-file Miscellaneous.  For steps to attach a PDF, please read Attaching PDF Documents to a 1040 Return.

To exclude all or a portion of a distribution of education distributions from a 1099-Q, enter the amount to exclude from the 10% penalty in Screen 14.3, Education Distributions, in Amount excluded from 10% tax.

There is no input for contributions to Coverdell Educational Accounts. These contributions have no effect on the tax return.

To enter Coverdell educational distributions (1099-Q):

1. Go to Screen 14.3, Educational Distributions.
2. Enter the amounts in the Educational Distributions (1099-Q) section under the Form 1099-Q subsection

Note:  Qualified Expense input is required in the Qualified Expenses subsection in order to show distributions as nontaxable.

1. Go to Screen 51, Modifications (State & Local).
2. Select Arizona Modifications from the left navigation panel (this will take you to Screen 51.101, Arizona Modifications).
3. Scroll down to Arizona Subtractions section.
4. Enter the appropriate amount in the field Contributions to 529 college savings plan

Contributions to the Arkansas Tax Deferred Tuition Savings Program can be shown on Forms AR1000ADJ or Form AR1000-CO. The input for this is in two different areas in the detail tab.

• If you have made contribution to the Arkansas Tax Deferred Tuition Savings Program:
  1. Go into Screen 50.351, Arkansas Income.
  2. Scroll to the section Arkansas Adjustments (AR1000ADJ).
  3. Enter the amount into the field Arkansas program contributions
• If you wish to contribute a portion or all of your overpayment/refund to an Arkansas Tax Deferred Tuition Savings Program:
  1. Go into Screen 56.351, Arkansas Contributions.
  2. Scroll to the section Arkansas Brighter Future Fund Plan.
  3. Enter the Account Number and Total Contributions. These will show on form AR1000-CO and flow on to form AR1000F.

1. Navigate to Screen 51.211, Connecticut (Schedule 1)
2. Scroll to the Connecticut Subtractions section.
3. Under the sub section CT Higher Education Trust (Chet) :
4. Account Number - Enter your CHET account #.
5. Contribution - Enter the amount of your CT Higher Education Trust (CHET) contribution made for the taxable year. 

1. On the Detail tab, go Screen 51, Modifications.
2. Under St. Mod. on the left panel, select Iowa Screen 51.341.
3. Select Iowa Adjustments in the Section list.
4. In Other Adjustment Type table, select College Saving Plan
5. In Other Adjustment Amount, enter the applicable amount

1. Go to Screen 51, Modifications.
2. Under the St. Mod. section of the left hand navigation, select Missouri.
3. In the Section list, select Missouri Subtractions.
4. In the field Exempt contributions made to a qualified 529 plan (max contributions - $8,000 for single, $16,000 for married filing combined), enter the amount of annual contributions made to the Missouri Savings for Tuition Program to print on Form MO-A.

Per the instructions for Form IT-225, nonresidents of New York filing Form IT-203 should place the deduction for 529 contributions in the federal column only. Part-year residents filing form IT-203 should place the amount contributed while a resident into the state column. The 529 plan contribution instructions for form IT-225 say:

• S-103 New York's 529 college savings program deduction
  
• Form IT-201 filers: Enter the subtraction modification on line 30 of Form IT-201, as applicable. See the instructions for Form IT-201. Do not enter this code on form IT-225
  
• Form IT-203 filers: If in 2023 you, as an account owner, made contributions to one or more tuition savings accounts established under New York's 529 college savings program, then enter that amount, up to $5,000 for an individual, head of household, qualifying surviving spouse, or up to $10,000 for married taxpayers filing a joint return in the Total amount column only.
  
• Part-year resident individuals only: Also enter in the New York State allocated amount column any such contributions to a New York's 529 college savings program you made while you were a resident of New York state