529 Beneficiary Change

Forum|Forum|5 years ago
March 1, 2021
4 replies
14 views

During 2020 one 529 beneficiary finished college so I changed beneficiaries mid-year and distributed out of 529 for second beneficiary. Can I apply college expenses for both in the same year?

MaryK4

Level 15

Yes you can apply the college expenses for two beneficiaries in the same year- as long as the distributions are applied to the expenses of the each beneficiary.

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dkmjgalAuthor

Level 2

Thank You. I have each expense clearly earmarked and can cleanly tie them. Do I list both names as the student in TurboTax. If I try to enter each student separately only the first student expenses are applied.

MaryK4

Level 15

In this particular situation, TurboTax would only allow one beneficiary (because it is an uncommon situation). However, this is for the calculations (Worksheet) and is not reported to the IRS so you can either enter the total under one beneficiary name and keep the records with your tax records just in case. Please note that TurboTax uses this information for the Education Credits as well so if you also claim the American Opportunity Credit or Lifelong Learning Credit an additional adjustment may be needed- if not, you are fine with this workaround. Post again if you need more help!

@dkmjgal

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