We have a 529 for our son who is in college. We have always used the 529 for qualified education expenses. However this year, because we had we an excess in funds, we decided to do a non qualified withdrawal of 529 funds. We know we will have to pay a penalty and income tax on the Earnings of the portion we withdrew. We received a 1099Q form which showed the total 529 funds withdrawn and the total earnings. We got one form, so that includes the qualified and non-qualified grouped together. When I enter the information into Turbo Tax, it doesn't give me a way to say how much of the total is qualified vs unqualified. How do I do this? Plus the recipient (beneficiary) is my son for the qualified education expenses, but for the unqualified portion they sent my wife a check, since she is the custodian of the account. Trying to figure out how it will know to only take a penalty and income taxes on the non-qualified portion, if it doesn't know what that portion is. And lastly my son has never file a return since he is only in college and doesn't work. Does he have to file a return because of the 1099Q? We have always just done all the taxes under our joint filing for my wife and I. I know lots of questions, but I haven't seen a question answered like this.
Thanks
