Sunday, 2 March 2014

How to Report Form 1099-Q on Form 1040

Form 1099-Q is the form for payments from qualified education programs. This form is sent to anyone with qualifying payments from an educational program and must be reported to the Internal Revenue Service on the recipient's individual income-tax return. The information reported on Form 1099Q is considered income, and you report it in the income section of individual federal income-tax returns. Have a question? Get an answer from tax adviser now!
Instructions
1 - Obtain a federal income tax Form 1040 from the Internal Revenue Service. Locate and print the form online or pick up a copy at your local post office or tax office. The IRS mails income-tax forms to taxpayers at the beginning of the year as well.
2 - Report the income from Form 1099-Q on your federal form 1040. Only report the amount in box two of your form 1099-Q. Enter it as "Other Income" on line 21 of your Form 1040.

3 - Complete your federal income-tax return with the remainder of your tax information for the tax year. Attach copy A of your 1099-Q to your Form 1040 before sending it to the Internal Revenue Service.

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