I am wondering how much of a recent 529 withdrawal will be taxable.
In Jan. 2025, we rolled over my daughter's Coverdell account to her 529 plan. I am the account owner and my daughter is the beneficiary.
In June 2025 we made a withdrawal from her 529 plan based on scholarships she received. We sent the withdrawal check to me. I believe we won't have any penalty, because we can show her scholarships applied to courses taken in spring 2025.
1) I assume that means it will be taxable on my taxes, not my daughter's? (That is what we want - taxable to me.)
2) Are only the earnings on the account taxable? Or is the whole check we received taxable?
3) What is the basis of the account - the amount rolled into the 529 plan in January? Or the amount originally contributed to the Coverdell plan before we rolled it over?
Thank you!
