1099-B for UTMA withdrew to pay tuition, does this need to be entered?

[RBB10]

Withdrew from UTMA to pay tuition, received a 1099-B. Do we need to pay taxes on this as the amount went directly to pay tuition?

[SusanY1]

Maybe.  There is no exemption from tax for sales/withdrawals from UTMA accounts.  However, the income is reported on the beneficial owner's tax return (typically, the student) as it is considered to be the asset of the minor.  

[Hal_Al]

Simple answer: yes.  Withdrawals from a UTMA are nor exempt from tax just because the money was used for tuition.

This is why 529 plans have replaced UTMA as the main savings vehicle for college.