DIY Products

DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

Reply
Valued Pioneer
Posts: 3
Registered: ‎05-05-2018

Problem with 1099 Q Reporting - SOFTWARE ENHANCEMENT REQUEST OR ALTERNATE SOLUTION

For the past two years I've gotten notices from the IRS about providing more info about my 1099 Q (for my non-dependent daughter's qualified college expenses using funds from her 529 account).  Currently, the interview only asks if you have taxable income.  Since I don't (I make sure to check the box 'this withdrawal was for qualified expenses') and the 1099 Q shows this, there are no follow up questions in the software.  For some reason, the IRS isn't satisfied with this and wants more detail.  I'd like to provide detail to them, but since the software doesn't require more detail and I e-file, I don't have a way to do so.  Since this is two years running and I suspect I'm not alone, I'd like to find out if there is a way to provide the information via my e-file return.  

 

The IRS letter stated that to "avoid any future problems with the QEP payments, I should 'attach a copy of the worksheet' to my tax return or a statement on form 1040 line 21 listing the amount of payments and the taxable amount.  

 

Looking in the software, I see I can add on line 31 of the 1040 worksheet '1099 Q Taxable Income' $100, the on the next line I can put 'Qualified Education Costs' of ($100).  The net is zero, but the detail is there.  If the detail is provided in e-file, I suppose this is a clumsy solution.

 

PS.  I have tried to ask this question online and via phone.  I have had an extremely poor experience trying to access H&R Block support by phone (where the computer told me to call the IRS then hung up on me).  Hopefully an H&R Block person can respond to this.