DMarkM1
Employee Tax Expert

State tax filing

The question refers to receiving a payment from the 529 Plan.  If the 529 payment was used for qualified education expenses then it would not be included in the federal tax return.  If the 529 distribution was not used for qualified education expenses then it would be included as income on the federal return.  The entries for those are made in the "Education" topic form 1099-Q entry.  

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