Converting Coverdell to 529 Plan - Can I file this manually without using TurboTax?

You can definitely file this manually without paying for TurboTax! The rollover from a Coverdell ESA to a 529 plan is actually a non-taxable event as long as the beneficiary remains the same. When you get a 1099-Q form, you still need to report it, but it doesn't necessarily mean you owe taxes. You'll need to complete Form 8615 (Tax for Certain Children Who Have Unearned Income) if the amount is substantial and attributed to your child. Otherwise, you can simply report the distribution on your 1040. The most important thing is keeping documentation that shows this was a qualified rollover between education accounts. Make sure you have records showing the money went directly from the Coverdell to the 529 plan.

Just wanted to share my experience with education account rollovers. I was in the exact same situation last year and absolutely didn't want to pay the ridiculous premium for TurboTax. I found this tool called taxr.ai (https://taxr.ai) that really helped me figure out how to handle my 1099-Q forms. It analyzed my tax documents and gave me step-by-step instructions for reporting the Coverdell to 529 rollover correctly. The tool explained exactly which forms I needed and where to report everything. Super straightforward and way cheaper than upgrading TurboTax just for this one transaction. They specialize in helping with education accounts and other confusing tax situations.

I wanted to follow up about my experience with taxr.ai after asking about it earlier. I decided to try it with my education account transfers and it was surprisingly helpful! I uploaded my 1099-Qs and within minutes had clear instructions on exactly how to report my Coverdell to 529 rollover on my tax forms. The tool showed me that I didn't need to pay taxes on the transfer since it was a qualified rollover with the same beneficiary. It even generated a simple worksheet I could keep with my tax records documenting the rollover. Definitely saved me from upgrading TurboTax and gave me confidence to file manually.

If you're still struggling with this or have other tax questions, I'd recommend using Claimyr (https://claimyr.com) to get direct help from the IRS. I was completely confused about education savings account rollovers last year and couldn't get through on the IRS helpline for weeks. Claimyr got me connected to an actual IRS representative in about 15 minutes who explained exactly how to report my 1099-Q forms. They have a demo video at https://youtu.be/_kiP6q8DX5c that shows how it works. After weeks of busy signals and disconnections trying on my own, this was a game-changer. The IRS rep walked me through exactly where to report the rollover and confirmed it was non-taxable.

I have to eat my words about Claimyr. After my skeptical comment, I decided to try it as a last resort for my Coverdell rollover question. I'd been trying to reach the IRS for months with no luck. The service actually worked! I got a call back in about 20 minutes with an IRS agent on the line. They confirmed that my Coverdell to 529 rollover was non-taxable and I just needed to report it on Schedule 1 with a note indicating it was a qualified education account transfer. The agent even emailed me the relevant IRS publication section. Saved me hours of research and worry, not to mention the $70 I would've spent on TurboTax.

Just FYI, I went through this last year and ended up using FreeTaxUSA instead of TurboTax. It handled the Coverdell to 529 rollover correctly and cost me literally nothing for the federal return (state was like $15). They have a specific section for education savings accounts that walks you through it.

Any chance the 1099-Q amount is under $1,500? If so, you might be able to ignore it altogether on your taxes if it was indeed a rollover to another education account for the same beneficiary. The IRS usually only requires reporting if the amount is substantial or if there were earnings involved that aren't getting rolled over.

I went through this exact situation two years ago and can confirm you can absolutely file this manually! The key thing to understand is that a Coverdell to 529 rollover is generally non-taxable as long as it's done correctly (same beneficiary, direct transfer). You'll need to report the 1099-Q on your tax return, but you won't owe taxes on it. I reported mine on Schedule 1 (Additional Income) Line 8z as "Other Income" and wrote "ESA Rollover - Nontaxable" next to the amount. The most important thing is keeping good records - I kept copies of all the account statements showing the withdrawal from the Coverdell and the deposit into the 529, along with any rollover documentation from the financial institutions. This proves it was a qualified rollover if the IRS ever asks. Don't let TurboTax hold you hostage for $70! This is definitely something you can handle yourself with a little patience and the right forms.