TT is showing 529 distributions as taxable income even though it's for qualified expenses for my kid's college expenses.I received a1099Q my name.How do I fix it?

gpmarion1 · ‎June 3, 2019

I entered the 1099Q information for distributions received from my kids 529 plan. i own it but they are the beneficiaries. I received payment from the 529 plan to pay me back for the qualified expenses that I paid. I'm not eligible for the educational credit. The program is treating this income as taxable, when it is not! I tried entering$0 in the " Amount used for educational deduction or credit" under education information. it's still wrong. How do I fix this?

Bsch4477 · ‎June 3, 2019

If all of the distributors from the 529 plan were used for education expenses you do not have to include that form on your return.

TT is showing 529 distributions as taxable income even though it's for qualified expenses for my kid's college expenses.I received a1099Q my name.How do I fix it?

Education