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kcvoll44
New Member

Is there always a taxable portion of 529 plan distribution ?

 
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2 Replies

Is there always a taxable portion of 529 plan distribution ?

Distributions aren’t subject to federal tax if the funds are used to pay for qualified education expenses and you often don’t have to pay state tax either. However, distributions that exceed those expenses can be taxable. 

You can find details on qualified education expenses here What are considered "qualified education expenses"?

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sboyer001
New Member

Is there always a taxable portion of 529 plan distribution ?

I paid taxes on the $s deposited in 529 Ohio.  When withdrew some for Granddaughters tuition and fees, TurboTax adds that amount to my taxable income.  Explain?

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