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posted Jun 6, 2019 8:46:19 AM

How to claim funds from our 529 plan to pay local career institute

We used funds from our 529 plan to pay for school at a local career institute of technology for automotive classes that does not issue 1098t forms.  How do we claim the funds on income tax.  This money was used for payment of the classes and supplies, i.e. tools.  I have receipts for everything. 

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Level 6
Jun 6, 2019 8:46:22 AM

529 Plan distributions must be paid to an eligible educational institution.  These are any accredited college, university, vocational school, or other accredited post-secondary education institution.

If the Career Institute of Technology participates in the federal student loan program, then the school qualifies as an eligible institution.  Vocational schools typically do issue the Form 1098-T to students.  If you haven't already, double-check with the school first to confirm this.

If the school is not an eligible educational institution, then the 529 Plan distribution will be subject to a 10% penalty.

See this TurboTax FAQ below for steps to enter Form 1099-Q.  Click "See entire answer" for the full page view.

https://ttlc.intuit.com/replies/5113308