Looking to the spring. My daughter will have graduated. She or we will start paying off student loans. I have $$ left in her 529 plan.
If she decides to go for masters this may be moot but if she says no more school...I have 529 funds to withdraw and put toward her loans.
I found out thoug the only the first 10k is a tax free dispersement. Over that is taxable since for some reason loans are not a qualifed expense.
Let's say I take the dispersement and pay off the loan this year. Where does turbo tax capture all this when I file next year.
I'd almost like to do a new test return from scratch making believe such was the case THIS year and see what my tax burdon is.
