Why did I get both federal and state taxes take out as soon as I entered a 1099-Q? I thought funds taken out of a state 529 plan were not taxed? I have also entered my 1098-T.
Is it because I had distributions from the 529 sent to me and then I paid for tuition, room/board, etc?
The amount on my 1099-Q was less than the amount on my 1098-T.
Trying to figure out why ...
