Form 1099-Q

Form 1099-Q is a record of all distributions made from a Coverdell Education Savings Account (ESA) defined under Section 530.

If there was a reportable distribution, the fair market value of your Coverdell ESA account will be reflected as of the end of the year.

  Hover over the letters to get more information on each field.

Your Name and Address.

Recipient's Identification Number: Usually your Social Security Number (SSN) or Employer Identification Number (EIN).

Payer's Name and Federal ID Number: For forms with multiple records, the same Payer and Federal ID Number is used for all.

The Fund Number and Your Account Number.

Gross Distributions: The gross distributions paid to you this year from a Coverdell ESA under section 530.

Earnings: Earnings on the gross distribution. These earnings are not subject to backup withholding.

Basis: Basis of the gross distribution.

Trustee-to-Trustee Transfer box: This box will be checked if the distribution was made directly to another Coverdell ESA Plan or qualified tuition program.

Program Type: Shows whether the gross distribution was from a Coverdell ESA.

Designated Beneficiary box: This box will be checked if the recipient is not the designated beneficiary.

Fair Market Value of Account: Determined by multiplying the number of shares in your account by the net asset value on Dec. 31, 2018.

Your Questions Answered

The Form 1099-Q will be sent to the account owner for distributions from a Coverdell ESA, regardless of whether the distribution was payable to the account owner, a third party, or the designated beneficiary's institution of higher education.

No. Taxes should not be withheld from your account.

The balance in the account generally must be distributed or transferred within 30 days after the earlier of the following events:

  • a.) The designated beneficiary reaches age 30, unless the designated beneficiary is considered a special needs individual.
  • b.) The designated beneficiary's death.