If I withdrew money from a 529 savings and my student didn't use the money until 2020 do I still have to pay taxes on the amount withdrawn in 2019?

 
MinhT1
Expert Alumni

Education

If you withdrew money from a 529 plan in 2019 and did not spend the amount for education purposes until 2020, you will have to pay income tax on the earnings (and not the principal) of the amount withdrawn, and also a tax penalty of 10% of the earnings.

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Education

Thank you for clarifying this for me.