Additionally, the link below may be of assistance if you are also filing for California.
California will tax funds which are not taxed at the Federal Level if used for "Expanded Use" such as for elementary education expenses.
Use for Elementary Education was ADDED as an exception to tax for Federal Tax purposes, however California did not accept this addition.
According to Kiplinger Tax Newletter:
"Federal law now allows you to withdraw up to $10,000 tax-free from a 529 plan each year to pay tuition for kindergarten through 12th grade. Most states follow the federal law, but a few have different rules. California, for example, charges a 2.5% state penalty tax on earnings used for K-12 tuition. Oregon residents may have to repay any tax deduction they received for 529 plan contributions if they use the money for K-12 expenses."
Kiplinger Source
According to the State of California:
"Expanded use of 529 account funds – California does not conform to federal law regarding the IRC Section 529 account funding for elementary and secondary education or to the maximum distribution amount. If the amount was excluded for federal purposes, make an adjustment on line 8z, column C."
https://www.ftb.ca.gov/forms/2018/18-3805P-instructions.html#Part-II-Additional-Tax-on-Certain-Distr...
@djandnica
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