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Form 15109

Form 15109

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all right so for this video i wanted to cover the irs form 1099-q so what is it under what circumstances do you receive this and then do you have to do any kind of reporting on your form 1040 so a 1099-q is a cash distribution or payment from a qualified education program right so section 529 plans those are what people are most familiar with and 529 plans are basically college savings funds that are set up by parents for their kids and you put the cash in there and it can be invested in stocks and bonds interest bearing accounts and the income grows tax-free so you don't have to pay taxes on it um so if we look at an example here um john creates a 529 plan for his son mark mark is going to be starting his first year of college and he needs five thousand dollars for qualified tuition and other expenses so what john does is he goes to the 529 plan he goes into the account and he requests a distribution of five grand and then he uses that 5000 to pay for the first year's

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