What tax forms should I expect to receive?
You can expect to receive:
Form 1099-Q from your 529 plan provider, which reports distributions made from the plan
Form 1098-T from the school, which reports qualified tuition and related expenses
Note: These forms are issued by the school and 529 plan administrator, not by Backpack.
Who should be listed on the 1099-Q form?
Your 1099-Q, issued by your 529 plan, should list the 529 plan owner as the recipient.
Why the plan owner is listed
The 1099-Q is issued to whoever receives the distribution. For Backpack payments, families request the withdrawal payable to the 529 plan owner. Because the funds are distributed to the plan owner first, the 1099-Q is correctly issued in their name. This is standard 529 reporting practice.
Why this is not a problem
Your student will receive a 1098-T from their school showing the qualified education expenses that were paid. These two forms work together to document that the 529 distribution was used for eligible expenses.
Be sure to keep both the 1099-Q and the 1098-T with your tax records.
Important Disclaimer:
Backpack does not provide tax, legal, or financial advice. The information in this article is for educational purposes only and is not tailored to your specific circumstances. Please consult your tax advisor, CPA, or financial professional for advice relevant to your situation, especially regarding IRS reporting requirements, qualified educational expenses, and tax implications of 529 plans.