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Confused about why my taxes went up after qualified 529 Distribution
Before I started my Education expenses my taxes owed were $2518. I then entered the distribution from the 529 plan where I am the recipient and my son (who doesn't file due to not having a job) is the beneficiary. The gross distr was approx 27K with 8.7K and earnings and 17.9K basis The college expenses for tuition and books equaled the amount distributed from the 529. Yet my taxes increased $753 to $3271. I was under the impression that 529's were tax free earnings as long as it is used for qualified college tuition and books. So why am I paying more after this section
March 24, 2024
3:02 PM