529 plan distribution for Minnesota state filing

[mimi57001]

This is for question on Minnesota state tax filing.  I had my question answered for federal filing already.  I had 2 withdrawals from my son's 529 plan.  One was an accidental withdrawal of about $15,000 with a wrong amount to my bank account and then the entire amount was transferred back in less than a month to the original 529 plan.  The 2nd withdrawal of about $10,000 was to my son's bank account to pay for his tuition.  I got one 1099-Q under my name and one 1099-Q under my son's name. 

Q1: When filing for state tax in Minnesota, it is asking how much was withdrawn and how much was used as qualified education expense.  Since $15,000 was put back within the 60 day period, should I just enter $10,000 as the amount withdrew and $0 for not used as qualified expenses?  

Q2:  If I have to enter both amount as the total withdrawal - $25,000 , do I still enter $0 for not used as qualified expenses?  But $25,000 seems too much to be all considered as qualified expense which could easily trigger suspicion.  On Minnesota State filing, how do I explain that $15,000 was put back right away and was never used.  On Federal filing, there is a question about roll over to a qualified plan with 60 days, but not on the state filing. 

[ErnieS0]

Enter your total distributions as shown on Form 1099-Q. Minnesota says:

Enter the total amount of all distributions from accounts that, during the year, you:

• Were listed as an account owner or beneficiary
• Made a contribution to

Then enter the amount that was put back into your account as not used for education.

[mimi57001]

But the amount was put back to my son's 529 plan within 60 day.  If I entered that amount as not used for education, wouldn't I be taxed for the withdrawal and with the 10% penalty.  Federal tax form is able to identify this amount as not taxable since it was transferred within 60 days.  How do I do that for the Minnesota tax form so it knows that this amount is not taxable and that no penalty should be applied?

[AmyC]

@ErnieS0 is correct. Follow these steps:

1. Log into your return
2. Go to MN state
3. continue to the page that says Minnesota Credits.
4. Select 529 College Savings Plan
5. Enter the contributions made - rolled back into the plan
6. Enter the distributions received
7. Continue answering questions.
8. The MN schedule M1529  will show your entries and make the calculations but the main form, M1 should not be effected.