1099-Q Fact Sheet - 2025 IRS Form 1099-Q

Sep 19, 2026

2025 IRS Form 1099-Q Fact Sheet explains how withdrawals from Invest529, Prepaid529, or CollegeWealth accounts generate tax documents, how and when they are mailed and posted online, and who receives the form depending on whether payment goes to the student, the student’s eligible institution, or the account owner. It details reporting rules for qualified and non-qualified withdrawals, including the 10% federal penalty, common exceptions, and recordkeeping. It also provides access guidance and FAQ support for online account retrieval and withdrawal reporting for tax returns.

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2025 IRS Form 1099-Q Fact Sheet

Tax Reporting Information

Additional Notes

Resources

1099-Q FAQs

When will my tax statements be available?

How can I access my Form 1099-Q online?

If I did not make a withdrawal in 2025, will I receive a Form 1099-Q?

If I had an outgoing rollover to a Roth IRA or another 529 plan in 2025, will I receive a Form 1099-Q?

How do I report my withdrawals?

2025 IRS Form 1099-Q Fact Sheet If funds were withdrawn from your Invest529, Prepaid529 or CollegeWealth account in 2025, tax documents providing the withdrawal information (IRS Form 1099-Q) are posted online and will also be mailed. If the withdrawal was paid directly to the beneficiary (student) or to the student’s eligible educational institution, the Form 1099-Q will be mailed to the student. Otherwise, the Form 1099-Q will be mailed to the account owner. If you rolled over funds to a Roth IRA, the Roth IRA account owner will be sent a Form 1099-Q to the address you listed on the request. As an account owner, you can access your 1099-Q online through your account. Students can also set up their own online account access to view their 1099-Q online. Your student must have an active email address on file in order to create an online account. Tax Reporting Information • If the funds withdrawn from your account were a non-qualified Find information about tax withdrawal, then the earnings portion of that withdrawal benefits for education including should be reported as income on your federal tax return. examples, in IRS Publication The 10 percent federal penalty on the earnings portion of 970, also available by calling that withdrawal is also reported, typically on a separate the IRS toll-free at form. Please see the instructions for your tax return and 1-800-829-1040. IRS Publication 970. • If your student’s qualified education expenses for 2025 equal or exceed your account withdrawal(s) taken during the year, then the earnings may not need to be reported on your federal tax return. Remember that you cannot use the same qualified education expense for more than one federal tax benefit. For example, you may not use tax-free withdrawals from both a 529 account and a Coverdell Education Savings Account for the same expense. • Certain non-qualified withdrawals may not be subject to the federal penalty of 10 percent of the earnings. However, in any of these situations, you will still likely owe tax on the earnings portion of the withdrawal. The penalty does not apply if the withdrawal was: (i) paid on or after the student’s death; (ii) issued because the student is disabled; (iii) included in income because the student received a tax-free scholarship or fellowship up to the same amount of the withdrawal; or (iv) included in income because the expense it was used to pay (i.e., tuition) was also used to qualify for the American Opportunity Tax Credit (formerly the Hope Scholarship Credit) or Lifetime Learning credit. In any of these situations, although you may not be subject to the penalty, you will still likely owe tax on the earnings portion of the withdrawal. 2025 IRS Form 1099-Q Fact Sheet Additional Notes • Remember to keep appropriate documentation (copies of invoices, meal plan contracts, or textbook receipts, for example) for tax purposes. • If you are a Virginia taxpayer, non-qualified withdrawals may require the recapture of prior Virginia income tax deductions. • If you live outside the state of Virginia, please check with your state’s tax department to determine your state’s treatment of income from another state’s qualified tuition program. Resources For more detailed information, please see the Benefits Guide for Prepaid529 and the Withdrawal Guide for Invest529. Please also contact your tax advisor. Commonwealth Savers Plan, administrator of Invest529, cannot and does not provide legal, financial or tax advice, and the foregoing information should not be construed as such with respect to the consequences for any particular individual as a result of contributions or withdrawals from an account. Since each individual’s legal, financial, and tax situation is unique, a qualified professional should be consulted on any of the issues discussed in this document. 1099-Q FAQs The information below is provided as a resource to complete your tax returns and manage yo

FAQs

When will my Form 1099-Q be available and mailed?

If funds were withdrawn in 2025, the IRS Form 1099-Q will be posted online and mailed in January 2026.

Who receives the Form 1099-Q when withdrawals are paid?

If the withdrawal is paid directly to the student or the student’s eligible educational institution, it is mailed to the student. Otherwise, it is mailed to the account owner.

Will I receive a Form 1099-Q if I did not withdraw funds in 2025?

No. You receive a Form 1099-Q only if you withdrew funds from or closed your account; internal rollovers, investment directions, and transfers do not generate it.

How are withdrawals reported for tax purposes?

If qualified education expenses for 2025 equal or exceed the account withdrawal(s), the earnings may not need to be reported. Non-qualified withdrawals generally require reporting earnings as income and may include a 10% federal penalty, subject to specific exceptions.

Sep 19, 2026

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