1099-Q – Payments from Qualified Education Programs
Gross distributions from a qualified tuition program (529 plan) or from a Coverdell Education Savings Account reported in box 1 include both earnings (reported in box 2) and basis (reported in box 3). The distribution would normally not be taxable if you used it to pay for qualified education expenses, made a transfer between trustees, or rolled over the distribution into another qualified program within 60 days. Otherwise you may have to include it in Other Income on Form 1040. There may also be an additional tax on the amount you have to include in income. The additional tax would be reported on Schedule 5329.
1099-R – Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
This form is used to report distributions from various types of retirement plans. Gross distributions from box 1 could include rollovers, transfers, conversions, total distributions or periodic or non-periodic payments. Box 7 should include a code identifying the type of distribution you received.
If applicable, this amount should be reported on the line for “IRA distributions” or “Pensions and annuities” on Form 1040 or 1040A. The taxable amount reported in box 2a would then be reported on the corresponding line next to the above amounts on your tax return. If you received a lump sum distribution, you may have to file Form 4972. If box 2a is empty and the first box in 2b is checked, the payer was unable to determine the taxable amount. You can refer to the applicable Internal Revenue Service publication, depending on the type of retirement plan you have and the distribution you received. You will generally have to report a capital gain shown in box 3 on either Schedule D or Schedule 4972.
The amount shown in box 5 generally represents a recovery of your investment in the plan or contract. The net unrealized appreciation in box 6 is generally not taxable until you sell the securities. Box 8 will show the value of an annuity contract that you received as part of a distribution and if the distribution was made to more than one person, your percentage will be shown. This information will be needed to complete Form 4972 if you use the 10-year option. Box 9a shows your percentage of a distribution made to more than one person, and if you have a life annuity or a tax-sheltered annuity, you may need the amount in box 9b to determine the taxable portion of the distribution.