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

 
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KrisD
Intuit Alumni

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

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


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