RobertB4444
Employee Tax Expert

Education

Any portion that you pull out will include earnings.  The 529 plan should be able to calculate the portion that is earnings for you.  The portion that is earnings is taxed.

 

To help - if you put $18,000 into the account and it earned $2,000 then the balance in the account would be $20,000 - ten percent of which is earnings.  If you pull $1000 out of that account 10% will be classified as earnings or a taxable amount of $100.

 

@RC888 

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