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Education
Thanks again. I created a TurboTax return for my daughter and it shows she owes $2 in federal tax. I'd like to provide a few more details from our scenario to see if it affects your guidance:
My daughter is currently a senior in high school, and the $500 from the 529 plan was a deposit to confirm her planned enrollment in college this Fall. I believe using 529 funds for this purpose is a qualified expense and should not be taxable. Perhaps it was a mistake to send the money in the final days of 2016 (because she wasn't actually enrolled yet), but we were trying to meet the university's early January 2017 deadline to receive payment. In regard to the $2 tax (not a significant amount, but as a matter of primciple), does that information affect your guidance in any way?
My daughter is currently a senior in high school, and the $500 from the 529 plan was a deposit to confirm her planned enrollment in college this Fall. I believe using 529 funds for this purpose is a qualified expense and should not be taxable. Perhaps it was a mistake to send the money in the final days of 2016 (because she wasn't actually enrolled yet), but we were trying to meet the university's early January 2017 deadline to receive payment. In regard to the $2 tax (not a significant amount, but as a matter of primciple), does that information affect your guidance in any way?
May 31, 2019
8:19 PM