Hi,
I have 529 account with Fidelity for my daughter as the beneficiary. My daughter is in college now.
As Fidelity advised, one of the ways to withdraw the 529 fund and pay the tuition is by depositing the money to my fidelity accounts and make a debit payment to school. I have done this.
However, when I received my 1099-Q, it has my name on it. Turbo Tax consider this as taxable income. When I consult with Fidelity, they said that there is another step to tell Turbo Tax that the money I withdrew was paid to the school. We can provide the withdrawal and school payment history.
Can you please let me know the additional step in TurboTax that I need to do so that the college payment would not be taxable and I can deduct it?
