Hi, Hal_Al
Thanks for addressing my questions in the past with such details and clarity. I have a follow up question. I am ready to file for tax return and found out that on the state tax form, it asks to enter the total 529 plan distribution amount and the amount not used for qualified expenses. As I mentioned earlier I had mistakenly withdrew 529 plan with the wrong amount and put all of it back to a qualified plan within 60 days and then withdrew the right amount later in the year. Q1: So on my state form, do I put the total of the two distribution, and then 0 as the amount not used for qualified plan since the first withdrawal was transferred back right away to a qualified plan and not used at all? If I don't enter 0 as the amount not used for qualified plan, I will be taxed and penalized for the withdrawal. I don't see a line item indicating about the 60-day rules on the state form like the federal form. Q2: Or do I just enter the 2nd withdrawal amount for the total distribution amount since it was the correct amount which was actually used for the qualified plan?
