Earnings (Excess Contributions Only)   Definition Shows your Earnings portion of the gross distribution shown in Column 1 pertaining to excess contributions only. NOTE: For Coverdell ESA Distributions (other than earnings on excess contributions), we are not required to report an amount in Column 2. Instead we are providing you with the Fair Market Value of your account as of December 31, 2014 (see Fair Market Value). Generally, amounts distributed are included in income unless they are used to pay for qualified education expenses, transferred between trustees, rolled over to another qualified education program within 60 days or there has been a change in the designated beneficiary and the new designated beneficiary is not a family member or is over age 30 (except for beneficiaries with special needs). To figure your earnings, see the Coverdell ESA – Taxable Withdrawals and Basis Worksheet located in Publication 970, Tax Benefits for Education. Also, an additional 10% tax may apply to part or all of any taxable earnings from a Coverdell ESA. See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, and Form 1040 Instructions for information about how to report the 10% tax. If a final (total) distribution is made from your account and you have not recovered your contributions, you may have a deductible loss. Claim any loss on Schedule A, in the section labeled Job Expenses and Certain Miscellaneous Deductions, on the line labeled Other expenses.