- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
The 529 is nontaxable when used for 529 qualified Room and Board (including students living at home) and Qualified Education Expenses - Internal Revenue Service. Be sure to track where the money went to qualified expenses.
If possible, leaving $4k to be used for tuition and the education credit goes a long way, if you qualify.
You will receive a 1099-Q for the distribution and it is not entered if all of it went to qualified expenses. IRS Publication 970, Tax Benefits for Education states:
Page 45: Don't report tax-free distributions (including qualifying rollovers) on your tax return.
Reference: What You Need to Know about AOTC and LLC
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
‎April 15, 2025
5:18 PM