MarilynG1
Expert Alumni

Retirement tax questions

If you had a non-education withdrawal reported on a 1099-Q, the earnings will be taxable, so that amount is needed.  If you have that amount, subtract it from the distribution amount for a Cost Basis amount in Box 3.

 

Box 2 and 3 should add up to the Box 1 amount.  You may not have run into this when your earlier distributions were used for education expenses.  However, since you mention you have a 1098-T, it sounds like you did have qualified education education expenses.  If your 1099-Q distribution was for qualified expenses, you don't need to enter it in your return.  Keep records of what was paid with the 529 funds.

 

Here's more detailed info on Form 1099-Q.

 

@j0mike1993 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"