The 1099 reports income besides wages, salaries and tips. The 1099Q reports distributions from ESA (Education savings Accounts) also formerly known as Coverdell IRAs and 529 plans. You also will see information regarding a trustee to trustee transfer if you rolled over assets from one 529 college savings plan into another. If you made a qualified withdrawal from your 529 or ESA then generally you don’t report the distributions on the 1040 tax return as income, but if you made a withdrawal for reasons other than qualified higher education expenses than that is another issue altogether. Consult your tax advisor and also check out the following links for additional helpful tips and information.
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