Hi. I received a 1099-Q form, listing distributions that I took from a 529 account to pay for education-expenses for my daughters - both are in college and my dependents.
The form lists
1. Gross distribution
2. Earnings
3. Basis
and then states that the recipient is not the designated beneficiary. My question is:
DO i need to enter this form into my tax declaration even if all the distributions were used for qualified college expenses??? When I entered the form in my declaration, it triggered additional tax money to pay although these distributions should NOT be taxable. Can you clarify this?
