KathrynG3
Expert Alumni

State tax filing

See page 38 of the PA-40 Instructions which explain Pennsylvanis is determining if any distribution was not for educational expenses. If this occurred, there would be a state level tax. Therefore, TurboTax asks these questions but it will likely result in no effect on your return.

 

1. Yes, you could. But technically, always go by the social security number on the instrument--your daughter is not filing her taxes on your return

2. All educational expenses. Please see this article about 529 distributions

3. Tie it to the funds used just for your daughter, no earnings

4. It depends if you were out of compliance with your particular 529 plan in your particular state. It is likely n/a

5. n/a since this is the first year, you are correct. Yes, it will be easier to keep all Section 529 information and forms received together for future reference