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Level 2
June 5, 2019
Solved

529 qualified distributions

  • June 5, 2019
  • 11 replies
  • 0 views

I paid for room and board from a 529 plan distribution, which should be a qualified expense, yet Turbotax deems it to be an excess distribution taxable in my hands (I am the recipient, my daughter is the beneficiary).  Turbotax seems to only allow the tuition expense specified in the 1098-T as a legitimate expense.  I tried to fix this manually in the Student Information Worksheet Part VI Education Expenses line 17 Adjustment in the 529 column, but it cannot be edited.  How and where do I need to amend my tax return so that Turbotax will recognize room and board paid from a 529 plan as a qualified expense?

Best answer by levisncap89
Yes. 1 = a regular distribution. It presumes that all of the withdrawal was utilized for qualified expenses. In that instance, you don't need to enter the 1099-Q at all as long as your withdrawal was 100% utilized to pay for your adjusted qualified expenses

11 replies

Level 5
June 5, 2019
Yes. 1 = a regular distribution. It presumes that all of the withdrawal was utilized for qualified expenses. In that instance, you don't need to enter the 1099-Q at all as long as your withdrawal was 100% utilized to pay for your adjusted qualified expenses