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tap3
New Member

reimbursement for scholarship 529

I found out this week that I could take out the amount of my child's scholarships from their 529 without the 10% penalty.  She has received a scholarship for the past 3 years and I plan to take money out this year--now that I know.  I understand the recommendation is to do it the year that they receive the scholarship, but I would like to take out more than just what she receives this year.  How would I enter that on turbotax without the 1098-T for the current year matching the amount of scholarship I can take out?  I'd also like to spread it out over a couple years so that I don't have significant "income" that would bump me into a higher tax bracket and in that case, I wouldn't have a 1098-T at all because my daughter will be out of college. 

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1 Reply
Hal_Al
Level 15

reimbursement for scholarship 529

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