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Education
A 529 can be used to pay for eligible vocational or trade schools. To find out if his school is eligible and learn more, see Can You Use a 529 Plan to Pay for Trade School. These are the options:
- If the amount you withdrew covers eligible expenses at an eligible school, then none of it is taxable. Your expenses sound reasonable, see Qualified Education Expenses - Internal Revenue Service. If none of it is taxable, you do not enter the 1099-Q.
- If you withdrew for example- $10,000 but only $8,000 went to qualified expenses, then you would have some taxable income.
- If the school is not eligible, then all of it is taxable.
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‎February 5, 2025
11:46 AM