Solved: In Dec 2017, we withdrew 529 funds for tuition, but the college reflected it in Jan 2018 (not 1098-T). An "Excess distribution" is triggering a tax payment in 2017. Help!
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In Dec 2017, we withdrew 529 funds for tuition, but the college reflected it in Jan 2018 (not 1098-T). An "Excess distribution" is triggering a tax payment in 2017. Help!

This is a question about 529 reporting. In late December 2017, we withdrew money from the 529 for college tuition; we directed the money to be sent directly to TMS (the college's billing service). This full amount was reflected in the 1099-Q for 2017.  The college did not reflect this payment until early Jan 2018; i.e., it wasn't reflected in the 2017 1099-T.  Thus, a significant "Excess distribution" appears to be triggering a large tax payment for us in 2017. How can we correct this timing issue?"
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Level 11

In Dec 2017, we withdrew 529 funds for tuition, but the college reflected it in Jan 2018 (not 1098-T). An "Excess distribution" is triggering a tax payment in 2017. Help!

When you are entering the  1098-T, below Box 2, click the blue link 'What if this is not what was paid to this school?' (screenshot).

An entry box will open where you can enter the actual amount paid to the school (screenshot).

Remember to make the adjustment when entering 2018 education information. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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Highlighted
Level 11

In Dec 2017, we withdrew 529 funds for tuition, but the college reflected it in Jan 2018 (not 1098-T). An "Excess distribution" is triggering a tax payment in 2017. Help!

When you are entering the  1098-T, below Box 2, click the blue link 'What if this is not what was paid to this school?' (screenshot).

An entry box will open where you can enter the actual amount paid to the school (screenshot).

Remember to make the adjustment when entering 2018 education information. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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