529 Principle only Withdrawal

[oubrebm]

How do I enter a 529 principle only withdrawal on my taxes. I understand that you are not penalized 10% if you withdraw on what you deposited and not on gains.  

[MichaelG81]

In the search menu type, "529" then select the jump to link in blue.

• Click edit or add a 1099Q
• Make sure your basis (or original amount you put in) is in Box 3.
• Enter this information click continue from your 1099-Q form
• Go through interview and answer honestly, you may think it is taxable but it may not have an affect on your taxes. Especially if it was a principal withdrawal. 

If your gross distribution is higher than your basis you may be taxed on earnings. Seems like this is not the case with the info provided. 

@oubrebm

[Hal_Al]

You are not allowed to take a "Principal only" Withdrawal (distribution).  Every distribution is part earnings (box 2 of the 1099-Q) and Basis (principal) (box 3).  The earnings portion is subject to tax and 10% penalty.

Only if the account never earned any money or shows a loss, there will be 0 in box 2 of the 1099-Q and nothing will be taxed and there will be no penalty.

You may be thinking of a Roth IRA, where you are allowed to withdraw your contributions (principal) tax and penalty free.