IRS Form 1099-Q reports money taken out of a 529 plan, a Coverdell Education Savings Account (ESA), or a state-run prepaid tuition plan during the tax year. The plan administrator sends the form to the person who received the money and to the IRS, and the recipient may owe income tax plus a 10% extra tax if the cash did not pay for qualified school costs under Internal Revenue Code §529 and §530.
If you ignore the form or fill it out wrong, the IRS can send a CP2000 notice, charge back taxes, add penalties, and pull state tax breaks back through what tax pros call “recapture.” A 2024 ISS Market Intelligence 529 Industry Analysis report shows U.S. families held more than $508 billion in 529 plans across 16.8 million accounts, so millions of these forms hit mailboxes each January.
Here is what you will learn in this guide:
- 📬 Who gets a 1099-Q, who files it, and the January 31 deadline trap
- 🧾 A line-by-line walk-through of every box on the form for tax year 2025
- 👨👩👧 Three real scenarios with named people, dollar amounts, and tax math
- ⚖️ How to coordinate 1099-Q withdrawals with the American Opportunity Tax Credit and Lifetime Learning Credit
- 🚫 Seven common mistakes that trigger the 10% extra tax and how to dodge them
What IRS Form 1099-Q Reports
Form 1099-Q is the official IRS information return for “Payments From Qualified Education Programs.” The plan administrator, called the payer, files this form with the IRS and mails a copy to the recipient, which is whoever actually received the cash. The rules sit inside IRC §529 for 529 plans and IRC §530 for Coverdell ESAs, and the IRS spells out the filing steps in the 2025 Instructions for Form 1099-Q.
The form is short, but the math behind it is not. Every dollar pulled from the account splits into two parts: your original contributions, called basis, and the investment growth, called earnings. Only the earnings part can ever be taxed. The qualified status of the spending decides whether those earnings stay tax-free or become taxable income on the recipient’s return.
The form also matters for state taxes. Many states, like New York and Illinois, give a state income tax deduction for 529 contributions, and they claw that deduction back if you take a non-qualified withdrawal. The Saving for College state tax deduction chart tracks each state’s rules.
Who Sends the Form
The payer is the financial institution or state agency that runs the education account. For 529 plans, that means firms like Vanguard, Fidelity, or a state’s program manager such as Ascensus. For Coverdell ESAs, the payer is the bank or broker holding the account. The payer must file Copy A with the IRS by February 28 on paper or by March 31 if filing electronically through the IRS FIRE system.
The payer must mail Copy B to the recipient by January 31 of the year after the withdrawal. If the payer files late or with errors, the IRS can charge up to $330 per form under IRC §6721, with the penalty rising for willful neglect. A common misconception is that the account owner files the form; the account owner does not file it, the payer does.
Who Receives the Form
The recipient line confuses families more than any other part of the form. For a 529 plan, the recipient is the person whose Social Security Number got the check. If the plan sends the cash straight to the school or to the beneficiary student, the student gets the 1099-Q. If the plan sends the cash to the account owner, like Mom or Dad, the account owner gets it. The IRS lays this rule out in Publication 970, Chapter 8.
This split matters because it changes whose tax return shows the income. If the student is the recipient and a withdrawal is non-qualified, the student often pays tax at a lower rate, although kiddie tax rules under IRC §1(g) can push the rate back up. A real-world example: if Maria, a college sophomore, asks her 529 plan to pay her tuition bill directly, she gets the 1099-Q, not her father who owns the account.
Line-by-Line: Every Box on Form 1099-Q
The 2025 version of Form 1099-Q has six numbered boxes plus payer and recipient information at the top. Each line carries a specific tax meaning, and the IRS cross-checks every figure against the recipient’s Form 1040. Missing or misreading any box is the fastest way to get a CP2000 mismatch letter from the IRS.
Before you start, gather the year-end statement from the plan, every tuition and fees statement on Form 1098-T, receipts for books, room and board figures from the school’s published cost of attendance, and any scholarship award letters. You need these to figure out qualified expenses for the year. Without that paperwork, you cannot prove the withdrawal was qualified if the IRS asks.
The plan administrator fills out every box, so the recipient does not write on the 1099-Q itself. The recipient uses the boxes to fill out a worksheet inside Publication 970 and, if any earnings are taxable, reports the income on Schedule 1 of Form 1040.
Payer and Recipient Information
The top-left block lists the payer’s name, address, and Taxpayer Identification Number (TIN). This is the 529 plan or Coverdell custodian. Always check that the TIN matches the plan’s prior-year forms; a typo here can trigger an IRS mismatch.
The top-right block lists the recipient’s name, address, and TIN. The TIN is almost always a Social Security Number. If the SSN is wrong, file a written correction request with the payer right away because the IRS uses that SSN to match the form to a tax return. The account number line below is optional but helps the payer track multiple accounts for the same family.
A common mistake here is failing to update the address after a move. The recipient may never receive Copy B, but the IRS still gets Copy A, and the income mismatch lands on the recipient’s return anyway.
Box 1: Gross Distribution
Box 1 shows the total amount the plan sent out during the calendar year, including both contributions and earnings. This figure includes checks mailed to the school, ACH transfers to the account owner, and rollovers to other 529 plans. It does not include investment fees deducted inside the account.
The plain-English meaning: this is every dollar that left the plan during the year. The consequence of ignoring Box 1 is that the IRS already has a copy, so any unreported amount triggers an automated under-reporter notice. Real-world example: when Jamal’s Ohio CollegeAdvantage plan sent $18,000 to his university, Box 1 read $18,000 even though only $11,000 covered tuition. A common misconception is that Box 1 itself is taxable; only the earnings portion can ever be taxed, never the basis.
Box 2: Earnings
Box 2 reports the part of Box 1 that came from investment growth. The plan calculates this using the pro-rata earnings ratio from IRS Notice 2001-81 and Publication 970: earnings divided by the account’s total value at the time of the withdrawal, multiplied by the gross distribution.
If a withdrawal is fully qualified, Box 2 is non-taxable and never appears on the recipient’s return. If it is non-qualified, Box 2 becomes ordinary income and may also face a 10% additional tax under IRC §529(c)(6). The consequence of ignoring Box 2 on a non-qualified withdrawal is back tax plus penalty plus interest. A common misconception is that the 10% tax applies to the whole distribution; it only applies to the earnings.
Box 3: Basis
Box 3 is the contribution portion of Box 1. Basis is always tax-free because the contributor already paid tax on that money before depositing it. Box 1 always equals Box 2 plus Box 3.
For example, if Priya’s grandmother contributed $50,000 over ten years and the account grew to $80,000, the basis ratio is 62.5%. A $10,000 withdrawal would show $6,250 in Box 3 and $3,750 in Box 2. The consequence of misreading basis is double-counting income; people sometimes treat the whole gross distribution as taxable, which inflates their tax bill. A common misconception is that basis is the same as cost basis on a brokerage 1099-B; it is calculated differently here under the §529 rules.
Box 4: Trustee-to-Trustee Transfer Checkbox
Box 4 is a checkbox the payer marks when the withdrawal moved directly from one 529 plan or Coverdell to another. These rollovers, allowed once every 12 months for the same beneficiary under IRC §529(c)(3)(C), do not count as taxable distributions.
If Box 4 is checked, the recipient does not report the amount as income, but should keep the 1099-Q with tax records to show the IRS in case of a mismatch letter. The consequence of skipping the rollover paperwork is that the IRS treats the full Box 1 as a taxable distribution. A common misconception is that you can do unlimited rollovers; the once-per-12-months rule applies for the same beneficiary unless you also change the beneficiary.
Box 5: Type of Account
Box 5 has three checkboxes that tell the IRS what kind of plan made the payment: a state-sponsored qualified tuition program (529), a private 529 plan, or a Coverdell ESA. The label matters because the rules differ slightly between them, especially for K-12 use and the new 529-to-Roth IRA rollover.
The consequence of mis-coding Box 5 is wrong tax treatment, since Coverdell ESAs allow K-12 supplies, but 529 K-12 use is capped at $10,000 of tuition per year per beneficiary under IRC §529(c)(7). A common misconception is that Coverdell and 529 share the same expense list; they do not.
Box 6: Designated Beneficiary Checkbox
Box 6 is checked if the recipient on the form is not the designated beneficiary of the account. This often happens when the account owner takes the cash personally instead of paying the school directly.
When Box 6 is checked, the IRS knows to look for the income on the account owner’s return, not the student’s. The consequence of mis-checking Box 6 is that the wrong taxpayer reports the earnings, leading to mismatch letters and amended returns. A common misconception is that the beneficiary always pays the tax; it follows the SSN on the form.
How to Calculate Taxable vs. Tax-Free
The 1099-Q is only half the story; the other half is figuring out the recipient’s “Adjusted Qualified Education Expenses,” or AQEE. AQEE is the total qualified spending for the year minus any tax-free help, like scholarships or amounts used for the American Opportunity Tax Credit.
The math goes like this. Divide AQEE by the gross distribution in Box 1 to get the qualified ratio. Multiply that ratio by Box 2 to get the tax-free earnings. The leftover earnings become taxable income reported on Schedule 1, line 8z, under “Other Income” of Form 1040.
Worked example: Sarah’s 529 plan distributes $20,000 (Box 1), with $5,000 of earnings (Box 2) and $15,000 of basis (Box 3). Her AQEE for the year is $16,000. The qualified ratio is 16,000 ÷ 20,000 = 0.80. Tax-free earnings = $5,000 × 0.80 = $4,000. Taxable earnings = $5,000 − $4,000 = $1,000, reported on her Schedule 1.
Qualified Higher Education Expenses
For college, qualified expenses under IRC §529(e)(3) include tuition, mandatory fees, books, supplies, and equipment required for enrollment. They also include room and board, but only up to the school’s published cost of attendance and only if the student is enrolled at least half-time.
Computers, software, and internet service count as qualified if the student uses them mostly for school. Special-needs services count if they are required for enrollment. The consequence of mis-classifying an expense, like a dorm-room TV or a parking pass, is that the related withdrawal becomes non-qualified and triggers tax plus the 10% penalty. A common misconception is that any “school-related” cost works; transportation, health insurance, and student activity fees that are not required for enrollment do not qualify.
K-12, Apprenticeships, and Student Loans
Since the Tax Cuts and Jobs Act of 2017 and the SECURE Act of 2019, 529 plans cover up to $10,000 per year of K-12 tuition per beneficiary, registered apprenticeship costs, and up to $10,000 lifetime in qualified student loan repayments under IRC §529(c)(9).
K-12 books, room and board, and supplies are not qualified for 529 plans, only tuition is. Coverdell ESAs are broader: they cover K-12 tuition, books, supplies, uniforms, transportation, and even tutoring under IRC §530(b)(3). The consequence of ignoring this gap is treating Coverdell-style spending as 529-qualified, which it is not. A common misconception is that the $10,000 student loan limit is annual; it is a lifetime cap per beneficiary, plus a separate $10,000 cap for each of the beneficiary’s siblings.
529-to-Roth IRA Rollover (SECURE 2.0)
Starting in 2024, the SECURE 2.0 Act §126 lets account owners roll up to $35,000 lifetime from a 529 plan into a Roth IRA in the beneficiary’s name. The 529 must have existed for at least 15 years, and the rollover is subject to the annual Roth IRA contribution limit of $7,000 in 2025.
The plan reports the rollover on Form 1099-Q with Box 4 checked as a trustee-to-trustee transfer. The Roth IRA custodian then reports the receiving side on Form 5498. The consequence of breaking the 15-year rule, the 5-year contribution lookback, or the income limit on the beneficiary is taxable earnings plus the 10% penalty. A common misconception is that any 529 owner can do this rollover for themselves; the receiving Roth IRA must be in the beneficiary’s name, not the account owner’s.
Three Common Real-World Scenarios
Below are three scenarios that cover the most common 1099-Q outcomes for tax year 2025. Each table uses two columns: the action taken and the tax result. Use these as templates when you map your own numbers.
Scenario 1: Fully Qualified Withdrawal
David Chen owns a New York 529 plan for his daughter Lily, a sophomore at Cornell. The plan pays Cornell $32,000 directly for tuition, fees, and on-campus housing. Lily’s total qualified expenses for 2025 equal $33,500.
| Withdrawal Step | Tax Outcome |
|---|---|
| Plan sends $32,000 to Cornell, Lily is recipient | Lily gets the 1099-Q with Box 1 = $32,000 |
| Box 2 earnings = $9,600, Box 3 basis = $22,400 | AQEE of $33,500 is greater than $32,000 |
| Lily reports nothing on her Form 1040 | Earnings are 100% tax-free under §529 |
Scenario 2: Non-Qualified Withdrawal With Penalty
Maria Lopez, the account owner, pulls $10,000 from her son Ricky’s Coverdell ESA to pay off a home equity loan. Ricky has zero qualified expenses for the year because he took a gap year.
| Withdrawal Step | Tax Outcome |
|---|---|
| Plan sends $10,000 to Maria, Box 6 checked | Maria gets the 1099-Q, not Ricky |
| Box 2 earnings = $3,000, Box 3 basis = $7,000 | $3,000 is ordinary income on Schedule 1 |
| Maria owes 10% extra tax on $3,000 | Extra $300 reported on Form 5329 |
Scenario 3: Scholarship Exception
Aiden Patel earns a $15,000 merit scholarship at the University of Texas. His parents withdraw $15,000 from his 529 to match the scholarship, planning to use the cash for non-school costs.
| Withdrawal Step | Tax Outcome |
|---|---|
| Plan sends $15,000 to Aiden’s father | Father gets the 1099-Q, Box 6 checked |
| Box 2 earnings = $4,500, Box 3 basis = $10,500 | $4,500 is ordinary income on Schedule 1 |
| Scholarship exception under §530(d)(4)(B)(iii) | 10% penalty waived, only income tax owed |
Mistakes to Avoid
Below are the seven mistakes that trigger most 1099-Q tax bills. Each one comes with the rule, the negative outcome, and the fix.
- Paying tuition in December but withdrawing in January, which breaks the IRS same-calendar-year matching rule and turns the whole withdrawal non-qualified.
- Double-dipping by claiming the same tuition for both a tax-free 529 withdrawal and the AOTC, which violates IRC §25A(g)(2) and forces a recalculation with penalty.
- Forgetting to subtract scholarships from AQEE, which inflates qualified expenses and creates a hidden taxable balance the IRS catches via Form 1098-T cross-checks.
- Sending money to the account owner instead of the school when the student is in a low tax bracket, which puts the income on the wrong return at a higher rate due to kiddie tax limits.
- Using a 529 for K-12 books, supplies, or transportation, which are not qualified and trigger the 10% penalty on earnings.
- Doing two 529-to-529 rollovers in 12 months for the same beneficiary, which violates IRC §529(c)(3)(C) and turns the second rollover into a taxable distribution.
- Skipping Form 5329 when reporting the 10% additional tax, which delays processing and invites a notice from the IRS Automated Under-Reporter unit.
Coordinating With Education Tax Credits
The biggest planning trap is the overlap between 529 withdrawals and the American Opportunity Tax Credit, worth up to $2,500 per student, and the Lifetime Learning Credit, worth up to $2,000. Under IRC §25A and §529(c)(3)(B)(v), the same dollar of tuition cannot be used to support both a tax-free 529 withdrawal and an education credit.
The smart move is to set aside $4,000 of tuition for the AOTC first, because the AOTC’s 100% credit on the first $2,000 and 25% on the next $2,000 is usually worth more than the tax-free 529 treatment on the same $4,000. Then use the 529 for the rest. The consequence of skipping this step is leaving real money on the table.
A worked example: if Olivia spent $20,000 on tuition and her parents claim the AOTC, only $16,000 of tuition counts toward AQEE. If the 529 paid the full $20,000, the leftover $4,000 of withdrawal becomes non-qualified, with earnings taxed and possibly penalized. A common misconception is that the AOTC and the 529 can stack on the same dollars; they cannot.
Pro-Rata Earnings Math
When part of a withdrawal is qualified and part is not, the earnings split pro-rata. The taxable earnings = Box 2 × (1 − AQEE ÷ Box 1). The IRS requires this exact formula in Publication 970, and tax software like TurboTax and TaxAct plugs the numbers in automatically when you enter the 1099-Q.
The consequence of using a different formula is an automated mismatch with the IRS computer. A common misconception is that you can pick which dollars in the withdrawal are “earnings”; the §529 rules force the pro-rata split.
State-Level Nuances
While federal tax rules apply across the country, state rules vary widely. Most states with an income tax let you deduct or credit 529 contributions to your home state’s plan, and a handful, like Pennsylvania, Arizona, Kansas, Maine, Missouri, and Montana, allow the deduction for any state’s 529 plan.
When a non-qualified withdrawal happens, many states “recapture” prior-year deductions by adding them back to current-year state taxable income. Illinois recaptures under 35 ILCS 5/203(a)(2)(Y), and New York recaptures under Tax Law §612(c)(32). The consequence of ignoring recapture is a state tax bill that can dwarf the federal one, especially for big withdrawals.
A real-world example: Daniel, a New York resident, deducted $20,000 in 529 contributions over four years, saving roughly $1,365 in state tax. When he later took a $20,000 non-qualified withdrawal, New York recaptured the full $20,000, adding it to his state taxable income. A common misconception is that federal qualification means state qualification; some states, like California, never gave a deduction in the first place but still tax non-qualified earnings on the state return.
Do’s and Don’ts
Use this list as a quick decision filter before any 529 or Coverdell withdrawal during the tax year.
- Do match the calendar year of the withdrawal to the calendar year of the qualified expense, because the IRS matching rule is strict.
- Do save receipts, Form 1098-T, and room and board figures for at least three years, since the IRS statute of limitations under IRC §6501 is generally three years.
- Do request the plan to pay the school directly when the student is in a higher bracket because of investment income, since this puts the 1099-Q on the student’s lower-rate return.
- Do reduce qualified expenses by tax-free scholarships and AOTC-claimed amounts, because §25A coordination forbids double benefits.
- Do file Form 5329 with any non-qualified withdrawal, since it is the official way to report or waive the 10% extra tax.
- Don’t withdraw more than the year’s qualified expenses just to “use up” the account, because the leftover triggers tax and penalty.
- Don’t ignore Box 6 on the 1099-Q, because it tells you whose return reports the income.
- Don’t forget the once-per-12-months rollover limit, since a second rollover is taxable.
- Don’t rely on K-12 spending for a 529 beyond $10,000 of tuition, since books and supplies do not count for 529 (only Coverdell).
- Don’t toss the form even when the withdrawal is fully qualified, because the IRS still has Copy A and may ask questions.
Pros and Cons of 529 Withdrawals
Knowing the trade-offs helps you decide whether to draw from the 529 or pay tuition from another source.
- Pro: Earnings grow federal-tax-free under IRC §529(a), saving years of compounding tax drag.
- Pro: Flexible beneficiary changes within the family under §529(c)(3)(C) let you redirect unused funds without tax.
- Pro: New 529-to-Roth rollover under SECURE 2.0 turns leftover education savings into retirement savings tax-free.
- Pro: State tax deductions in 30+ states reduce current-year state income tax bills.
- Pro: High contribution limits, often $400,000+ per beneficiary, dwarf retirement account limits.
- Con: Non-qualified withdrawals face ordinary income tax plus a 10% penalty under §529(c)(6).
- Con: State recapture rules can erase years of state tax savings in a single bad withdrawal.
- Con: Investment menus inside 529 plans are limited compared to brokerage accounts.
- Con: Coordination with the AOTC and LLC adds paperwork complexity that trips up many filers.
- Con: K-12 use is limited to $10,000 of tuition per year, narrower than many parents expect.
Key Entities to Know
The 1099-Q ecosystem includes several official players, each with a defined role. Knowing each one helps you understand who to call when something goes wrong.
The Internal Revenue Service writes the rules and processes the forms. The U.S. Department of the Treasury issues regulations under §529 and §530. The Securities and Exchange Commission oversees 529 plans as municipal securities. State agencies like the New York State Higher Education Services Corporation and the California ScholarShare 529 board sponsor most state 529s.
The plan’s day-to-day record keeper, called the program manager, is usually a private firm like Ascensus, Vanguard, Fidelity, or TIAA. The College Savings Plans Network is the trade group for state 529 administrators and publishes plan comparisons. A common misconception is that the IRS holds your 529; the IRS only collects the tax forms.
Court Rulings and IRS Guidance
Tax Court cases on 1099-Q issues are rare but instructive. In Karlen v. Commissioner, T.C. Summary Opinion 2011-129, the court held that taxpayers must reduce qualified expenses by tax-free scholarship amounts before computing tax-free 529 earnings, confirming the AQEE method.
The IRS has issued Notice 2018-58 on student loan repayments, refunds, and ABLE rollovers from 529 plans. Proposed regulations under §529 from 2008 still serve as the working framework, since final regs have never been issued. The consequence of ignoring this guidance is relying on outdated rules. A common misconception is that an absence of final regs means the rules are optional; they are binding through statute and notices.
How to Report on Your Tax Return
If the entire 1099-Q is qualified, the recipient reports nothing on Form 1040 but should keep the form, Form 1098-T, and expense receipts. The IRS will not send a love letter, but it might send a CP2000 if its computer cannot match the form to a return; a one-page response with the worksheet from Publication 970 usually closes the case.
If part of the 1099-Q is non-qualified, the recipient reports the taxable earnings on Schedule 1, line 8z, of Form 1040, labeled “Taxable 1099-Q earnings.” The 10% additional tax goes on Form 5329, Part II. If a scholarship, death, disability, or service academy exception applies, enter the exception code on Form 5329 to waive the 10% penalty while still paying income tax.
A real-world example: when Hassan took a $5,000 non-qualified withdrawal with $1,500 of earnings to cover an emergency car repair, he reported $1,500 on Schedule 1, line 8z, and $150 of additional tax on Form 5329. He kept the worksheet and 1099-Q with his tax records for at least three years. A common misconception is that tax software handles everything automatically; you must still enter the 1098-T, scholarships, and AOTC choices for the math to work.
Corrections and Amended Forms
If the payer issues an incorrect 1099-Q, the recipient should call the plan immediately to request a corrected form. The corrected form will have the “Corrected” box checked at the top and shows the right figures. Use the corrected form, not the original, to file your return.
If you already filed your tax return based on the wrong form, file Form 1040-X within three years of the original due date to amend. Penalties for late or wrong information returns under IRC §6721 sit on the payer, not the recipient. A common misconception is that the recipient is liable for payer errors; the recipient is only liable for under-reporting their own income.
FAQs
Do I have to report Form 1099-Q if all the money paid for qualified expenses?
No. You keep the form with your tax records but do not enter it on Form 1040 when the full distribution covered qualified higher education or eligible K-12 tuition under IRC §529 rules.
Is the 10% penalty waived if my child gets a scholarship?
Yes. Under IRC §530(d)(4)(B)(iii), the 10% additional tax is waived up to the scholarship amount, but the earnings portion is still subject to ordinary income tax on the recipient’s return.
Does the 1099-Q go on the parent’s or the student’s return?
Yes, it depends on whose Social Security Number is in the recipient block; the form follows the SSN, not the account owner, so direct school payments usually land on the student’s return.
Can I roll a 529 plan into a Roth IRA tax-free?
Yes, under SECURE 2.0 §126, up to $35,000 lifetime can roll from a 15-year-old 529 into the beneficiary’s Roth IRA, subject to annual Roth contribution limits and earned-income rules.
Are computers and internet bills qualified expenses?
Yes, since the 2015 PATH Act amended IRC §529(e)(3), computers, software, peripherals, and internet access used primarily by the student during enrollment count as qualified higher education expenses.
Do I owe tax if I rolled my 529 to another 529 plan?
No, trustee-to-trustee rollovers are not taxable as long as you do only one in any 12-month period for the same beneficiary, with Box 4 of Form 1099-Q checked.
Is room and board always qualified?
No. Room and board count only when the student is enrolled at least half-time and only up to the school’s published cost-of-attendance figure for that academic period.
Can I use a 529 for K-12 private school?
Yes, but only up to $10,000 per beneficiary per year, and only for tuition; books, uniforms, and transportation do not qualify for 529s, although they qualify for Coverdell ESAs.
Do grandparents trigger taxes when they pay tuition from a 529?
No, if the withdrawal is qualified, but grandparent-owned 529s used to hurt FAFSA aid; the FAFSA Simplification Act removed that issue starting with the 2024-25 award year.
What if I missed reporting a non-qualified 1099-Q on last year’s return?
Yes, file Form 1040-X within three years of the original due date, attach a corrected Schedule 1 and Form 5329, and pay the tax plus interest to avoid further IRS notices.
Does the 10% penalty apply if the beneficiary dies or becomes disabled?
No. IRC §529(c)(6) waives the 10% additional tax for distributions made after the beneficiary’s death or due to permanent disability, although income tax still applies to earnings.
Are student loan repayments from a 529 really tax-free?
Yes, up to $10,000 lifetime per beneficiary and another $10,000 for each sibling, under the SECURE Act amendment to IRC §529(c)(9), as long as the loans are qualified education loans.
Related reading
- Who Really Claims 1099-Q on Taxes? Avoid this Mistake + FAQs
- When are 1099-Q Distributions Taxable? Avoid this Mistake + FAQs
- Where to Enter 1098-T on FreeTaxUSA? (w/Examples) + FAQs
- Who Pays Tax On Coverdell Distribution? (w/Examples) + FAQs
- How to Fill Out IRS Form 1099-QA (w/Examples) + FAQs
- How to Fill Out IRS Form 8815 (w/Examples) + FAQs
- How to Fill Out IRS Form 8300 (w/Examples) + FAQs