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Frequently Asked Questions about the 1099-Q Form

The following information is designed to answer general questions about the 1099-Q form.  Please consult the IRS or your tax advisor with questions about your individual situation. 

Why did I receive a 1099-Q form?  What should I do with it?

A 1099-Q form is a record of funds distributed from a qualified tuition program (529 plan) to an account owner, student beneficiary, or designated school.  As a qualified tuition program, the GET Program is required by federal law to report this information to you.

• If you’re an account owner, you received a 1099-Q form because we sent you a refund or reimbursement check in 2007.

• If you’re a student beneficiary, you received a 1099-Q form because we sent you a reimbursement check or paid money directly to your school in 2007. 

What are qualified education expenses?

Qualified education expenses are the tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible college, university or other educational institution.  They also include some room and board costs.  For details, please review the qualified tuition program section in IRS Publication 970 Tax Benefits for Education.

What do the numbers on the 1099-Q form mean?

• Box 1 shows the total funds that were distributed from your GET account(s).

• Box 2 shows the earnings that could be subject to taxation if you did not use them for qualified education expenses as required by federal law.

• Box 3 shows the portion of the distributed funds that was contributed to your GET account(s).

When would the earnings in Box 2 be taxable?

The earnings could be taxable under the following circumstances:

• The distributed funds were not used for qualified education expenses.

• The student beneficiary was changed to someone who was not an eligible family member of the original student beneficiary.

Other circumstances may apply.  Please consult your tax advisor for more information.  

How do I report taxable earnings?

You report taxable earnings on line 21 of IRS form 1040.  If additional penalties apply, you also may need to complete IRS form 5329.  Please consult your tax advisor for details.

I bought GET units in 2007.  Do I need to report anything on my federal income tax return?
If you made contributions to your GET account but did not make any withdrawals during the year, you do not need to report anything on your federal income tax return.  Your contributions are non-deductible.

For more information:

Internal Revenue Service

Telephone:  1-800-829-1040 (toll-free) 

Publication 970 - Tax Benefits for Education (Qualified Education Tuition Program)