This is for question on Minnesota state tax filing. I had my question answered for federal filing already. I had 2 withdrawals from my son's 529 plan. One was an accidental withdrawal of about $15,000 with a wrong amount to my bank account and then the entire amount was transferred back in less than a month to the original 529 plan. The 2nd withdrawal of about $10,000 was to my son's bank account to pay for his tuition. I got one 1099-Q under my name and one 1099-Q under my son's name.
Q1: When filing for state tax in Minnesota, it is asking how much was withdrawn and how much was used as qualified education expense. Since $15,000 was put back within the 60 day period, should I just enter $10,000 as the amount withdrew and $0 for not used as qualified expenses?
Q2: If I have to enter both amount as the total withdrawal - $25,000 , do I still enter $0 for not used as qualified expenses? But $25,000 seems too much to be all considered as qualified expense which could easily trigger suspicion. On Minnesota State filing, how do I explain that $15,000 was put back right away and was never used. On Federal filing, there is a question about roll over to a qualified plan with 60 days, but not on the state filing.
