HOW DO I ENTER A 529 DISTRIUTION THAT WAS USED FOR A STUDENT LOAN PAYMENT?

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If your distribution from your 529 plan was less than or equal to the $10,000 lifetime limit available tax-free for student loan payments, you are not required to enter this information on your tax return. The IRS only requires that information on a Form 1099-Q be entered on the tax return when there is a taxable distribution.

Save your 1099-Q and student loan payment information with your tax records for at least three years in case of any inquiry from the IRS.

For more information about 529 plan distributions and how they affect your taxes please see THIS article.

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