1098-T and 1099-Q

kcas06 · ‎April 8, 2020

I pulled money in December 2019 from a 529 plan to be used for the Spring 2020 semester. Because of the timing, I am showing a 1099-Q distribution in tax year 2019, but no related 1098-T for 2019 (it will be reported by the University in 2020). How should I handle this on my 2019 return to avoid penalty?

MinhT1 · ‎April 8, 2020

To be exempt from taxation, 529 distributions must be used to pay for qualified expenses of the same year. In your case, you will have pay taxes and penalty on the earnings from your 529 distribution in 2019.

Please read this TurboTax Blog for more information.

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1098-T and 1099-Q

Retirement tax questions