In 10/02, my granddaughter received an $1150 distribution from her Coverdell ESA. Her 2002 education expenses exceded the distribution, thus no taxable income. Your website states that the distribution is to be reported on Form 8606. However, this form has been revised for 2002 and no longer has provision for reporting Coverdell distributions. Does anyone know how the distribution, for which she received a Form 1099-R, is to be reported on her 2002 tax return? Thanks in advance.