I had to respond to an IRS inquiry last year because they wanted to count part of my 529b disbursement as income. I sent information and was cleared. They told me that if I filed the "worksheet" I would not get another inquiry this year.
You need to use the information from Form 1099-Q, Payments From Qualified Education Programs to report the 529 Plan distribution on your tax return. You will also need to enter the information from your Form 1098-T, Tuition Statement, which is provided by your school. TurboTax will automatically complete the education expenses worksheet that will be filed with your tax return.
Often, these forms are not mailed and can be found online on the 529 Plan administrator's website and by logging in to your school portal. It may be listed under tax documents.
See the TurboTax FAQs below for steps on entering Forms 1099-Q and 1098-T. Click "See entire answer" for the full page views.
Still have questions?Make a post