If you are required to file Form 1099-Q, you must provide a statement to the recipient. Furnish a copy of Form 1099-Q or an acceptable substitute statement to each recipient. Also, see part M in the 2007 General Instructions for Forms 1099, 1098, 5498, and W-2G.

For the payer's/trustee's name and federal identification number, enter the name and employer identification number (EIN) of the qualified tuition program. For a program established and maintained by a state that uses the EIN of the state, enter the name of the state on the first name line and the name of the program on the second name line.

For a Coverdell ESA, enter the name and EIN of
the trustee.

For a qualified tuition program, list the designated beneficiary as the recipient only if the distribution is made (a) directly to the designated beneficiary, or (b) to an
eligible educational institution for the benefit of the designated beneficiary. Otherwise, list the account owner as the recipient of the distribution. Enter the SSN for the applicable recipient.

For a Coverdell ESA, enter the name and SSN of the designated beneficiary as the recipient.

The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1099-Q. Additionally, the IRS encourages you to designate an account number for all Forms 1099-Q that you file. See part L in the 2007 General Instructions for Forms 1099, 1098, 5498, and W-2G.

Gross distributions from a qualified tuition program,
whether in cash or in kind, include amounts for tuition credits or certificates, payment vouchers, tuition waivers, or other similar items. Gross distributions also include a refund to the account owner or the designated beneficiary, or to the beneficiary upon death or disability. For more information on reporting distributions, see Proposed Regulations
section 1.529-4.

Gross distributions from a Coverdell ESA include amounts for a refund, a payment upon death or disability, or a withdrawal of excess contributions plus earnings.

To determine the earnings (or loss) on the gross distribution reported in box 1, use the earnings ratio described in Proposed Regulations section 1.529-3 and Notice 2001-81. You can find Notice 2001-81 on page 617 of Internal Revenue Bulletin 2001-52 at www.irs.gov/pub/irs-irbs/irb01-52.pdf.

Enter the earnings in box 2. If there is a loss and this is not the final year for distributions from the account or there are no earnings, enter zero in box 2. Enter a loss in box 2 only if this is the final year for distributions from the account. Any earnings are not subject to backup withholding.

If you are reporting a distribution from a Coverdell ESA that includes a returned contribution plus earnings, you should file two Forms 1099-Q—one to report the returned contribution plus earnings, the other to report the distribution of the other part of the account.

You should file a separate Form 1099-Q for any trustee-to-trustee transfer.

For Coverdell ESAs, if you are not reporting earnings, see the Caution on page Q-1.

If the amount in box 2 includes earnings on excess contributions, enter distribution code 2 or 3 (as applicable) in the blank box below boxes 5 and 6. See Notice 2003-53 for more information.

Enter the basis included in the gross distribution reported in box 1. The amount in box 3 must equal box 1 minus box 2.

For Coverdell ESAs, if you are not reporting basis, see the Caution on page Q-1.

Check this box if the distribution was made directly (trustee-to-trustee transfer) from one qualified tuition program to another. For a Coverdell ESA, check this box if the distribution was made directly to another Coverdell ESA or a qualified tuition program.

In a trustee-to-trustee transfer between qualified education programs, the distributing program must provide you with a statement reporting the earnings portion of the distribution within 30 days of the distribution or by January 10th, whichever is earlier. You must properly account for this in computing the earnings or (loss) reported in box 2 and the basis reported in box 3.

Check the “Private” box if the distribution is from a qualified tuition program established by one or more private eligible educational institutions or check the “State” box if the distribution is from a qualified tuition program established by a state. Otherwise, check the “Coverdell ESA” box.

Check the box if the recipient is not the designated beneficiary under a qualified tuition program or a Coverdell ESA (see section 529(e)(1)).

For 2007, you may, but are not required to, include one of the following distribution codes in the blank box below boxes 5 and 6. You may abbreviate as needed. For example, for distribution code 1, you may enter “distr. code 1.”