Understanding Form 1099-Q
Form 1099-Q reports distributions and transfers made in the 2013 tax year from Coverdell Education Savings Accounts (“Coverdell ESAs”) (formerly known as Education IRAs). This information is reported to the Internal Revenue Service (IRS).
In accordance with guidance issued by the IRS, we are providing you with the fair market value of your Coverdell ESA as of December 31, 2013. We suggest that you review IRS Publication 970, Tax Benefits for Education, for more information on how to calculate the earnings portion of the gross distribution. It is recommended that you consult your tax advisor with any questions on how to properly report the information provided, as your individual tax reporting situation may require the guidance of a tax professional. If you have any further questions on your account(s) or the material enclosed, please call us at the telephone number printed on your tax form or contact your advisor. You may also obtain more information by visiting the IRS website at www.irs.gov.
A - FUND'S MAILING ADDRESS
B - RECIPIENT'S NAME AND ADDRESS
Your registration and mailing address. You are the recipient as owner of the account(s) listed on this form.
C - RECIPIENT'S IDENTIFICATION NUMBER
The number under which the amounts have been reported to the IRS. For individuals this is your Social Security Number, which has been masked on paper forms but not on electronic forms available behind the secure log-in on Dreyfus.com. Employer Identification Numbers have not been masked.
D - PAYERS'S NAME
E - PAYER'S FEDERAL TAXPAYER IDENTIFICATION NUMBER
F - FUND AND ACCOUNT NUMBER
The fund code of the fund and the account number from which the distributions were made.
Box (1). GROSS DISTRIBUTION
Total dollar amount of the distribution(s) from your Coverdell Education Savings Account in 2013.
Box (2). EARNINGS
This amount represents earnings on excess contributions removed from your account.
Box (3). BASIS
This box represents your basis in excess contributions removed from your account.
Box (4). TRUSTEE-TO-TRUSTEE TRANSFER
This will be checked if the distribution was made directly to another Coverdell ESA or a qualified tuition program.
Box (5). PLAN TYPE
N/A for Coverdell ESA accounts.
Box (6). BENEFICIARY
This will be checked if the recipient is not the designated beneficiary.
G - DISTRIBUTION CODE
Distribution code used to identify the type of distribution(s) you received in 2012.
H - FAIR MARKET VALUE
If a Fair Market Value is entered here, see IRS Publication 970 for how to figure earnings.