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529 earnings taxable?

Thank you very helpful.

 

It's pretty simple once explained here.

IMO the TT software is not doing a good job explaining/process these forms, thus driving me to the community for help. This is one of the things I rely on TT being able to do, and not leave me wondering "what about that form?".

529 earnings taxable?

Thanks Amy C.  I tried to find the reference you made  ("IRS Publication 970, Tax Benefits for Education states: If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form."   

 

I wasn't able to find it.  Could you indicate where the publication states this?  I looked on page 12 and 52 (per your note).  I am the recipient of the 529 disbursements on behalf of my kids, the beneficiaries.  So I'm including the 1099-Qs in my filing but ran into the issue that the distributions are being taxed despite my entries for qualified education expenses that are equal to the distributions.

 

Thanks very much!

 

529 earnings taxable?

@AmyC ... Sorry,  I just found the reference to "If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form."   on page 45  of Publication 970.  🙂   Greatly appreciate your thorough answer.

529 earnings taxable?

I understand not submitting either the 1099-Q or the 1098-T is an acceptable "workaround", but that does not fix what appears to be an inherent "bug" with TurboTax that seems to have persisted for at least the last several years.  How does this get flagged to QC for a permanent fix?

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