KrisD15
Expert Alumni

Education

If the distribution reported on the 1099-Q was used completely for Room and Board, please do not enter that Form 1099-Q on anyone's tax return. 

Using a 529 distribution to pay room and board is a non-taxable event. 

Room and Board cannot be used towards an education credit, so that expense is not reported. 

 

The Education section has been redesigned and offsetting a 529 distribution with Room and Board expenses seems to no longer be an option unless there is a software update in the near future.

Keep a copy of the 1099-Q and receipt for room and board with your tax file. 

 

According to the IRS:

"Generally, distributions are tax free if they aren’t more than the beneficiary’s AQEE for the year. Don’t report tax-free distributions (including qualifying rollovers) on your tax return."
 

@dreon1994 

 

 

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