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New Member
posted Jun 3, 2019 1:38:25 PM

We used the funds from a 529 saving plan to pay undergraduate fees. Can we deduct them under college expenses?

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1 Replies
Intuit Alumni
Jun 3, 2019 1:38:26 PM

If they were used for education expenses, you can allocate the education expenses to the 1099-Q. The distribution will not be taxable and the education expenses will not be available to use for a credit. 

In TurboTax, enter the 1099-Q first, then the 1098-T. If you don't have a 1098-T, enter the 1099-Q and enter how much was used for education which is asked on a following interview screen. 

CLICK HERE for IRS Pub 970 Tax Benefits for Education