The IRS recently released an updated version of Form 1099-Q (Payments from Qualified Education Programs). This form is used to report distributions from qualified tuition programs (QTPs) under section 529 and Coverdell education savings accounts (CESAs) under section 530. Most notably, a new checkbox has been added to Box 4 and labeled 4b for reporting QTP to ROTH IRA transactions. The existing checkbox, for trustee-to-trustee transfer, has been labeled 4a. The three checkboxes in Box 5 have been labeled 5a, 5b, and 5c for clearer reporting. The instructions have been updated accordingly.
Following a trend seen with many information returns for the 2024 and 2025 tax years, the IRS has also removed Copy C (for Payer/Trustee) from the form packet, along with the corresponding payer/trustee instructions.
Form 1099-Q can be found here.
