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Thank you so much, Marilyn. This is helpful and also great news. But, are there income limitations to 529 plans? What I mean is: if my income exceeds a certain amount, am I required to pay taxes on 1099-Q distributions whether or not they are for qualifying education expenses?
Not as far as Federal taxes are concerned. If you have a state-specific 529 plan, there may be some state restrictions.
Here's some info related to 529 State Limits.
Whoops, it was a 1099-Q that I entered for the 529 plan, not a 1098.
If the entire distribution reported on your 1099-Q was for Qualified Education Expenses, you don't need to enter it in your tax return.
Just keep it for your records, along with documentation of what you paid.
Here's more info on Form 1099-Q.
Thank you so much, Marilyn. This is helpful and also great news. But, are there income limitations to 529 plans? What I mean is: if my income exceeds a certain amount, am I required to pay taxes on 1099-Q distributions whether or not they are for qualifying education expenses?
Not as far as Federal taxes are concerned. If you have a state-specific 529 plan, there may be some state restrictions.
Here's some info related to 529 State Limits.
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